Newsweek (US Edition) 1937-07-03: Vol 10 Iss 1

EWS-WEEK

THE SECOND HORSEMAN

(SEE INDEX)

BETWEEN NEW YORK AND

CALIFORNIA

rT ” :
Grace Noches provide

ALL OUTSIDE ROOMS, EACH WITH
PRIVATE FRESH WATER BATH

TELEPHONE IN EVERY ROOM
OUTDOOR TILED SWIMMING POOLS
BEACH DECKS

OPEN AIR DINING ROOMS ON
PROMENADE DECKS

SPACIOUS LIVING ROOMS
CLUB BARS

DANCE ORCHESTRAS
DOROTHY GRAY BEAUTY SALONS
PRE-RELEASE TALKIES

RADIO PROGRAMS

DECK SPORTS — GYMNASIUMS
PALM COURTS — LIBRARIES
LAUNDRIES — BARBER SHOPS
NOVELTY SHOPS
MECHANICAL VENTILATION
PHOTO DARKROOMS

A Grace “Santa”

Rockefeller Center

New York, N.Y.
Oliver Bidg.,
Pittsburgh, Pa.

10 Hanover Square
New York, N.Y.
Little Bidg.,

Boston, Mass.

2 Pine Street,
San Francisco, Calif.

OR MEXICO CITY

Grace Cruises vd
Lf) ace YULSES VLSL
PUERTO COLOMBIA -BARRAN-
QUILLA One of South America’s busiest
ports, located at the mouth of the thou-
sand-mile-long Magdalena River.
CARTAGENA Oldest walled city in the
New World.

CRISTOBAL-COLON With its rows of
tempting Oriental bazaars.
THROUGH PANAMA CANAL BY
DAYLIGHT so you can see the giant
locks and other wonders of this great
engineering accomplishment.
BALBOA-PANAMA CITY Motor to
Madden Dam; visit U. S. Government
and Canal Buildings; night clubs, res-
taurants and outdoor beer gardens.

EL SALVADOR Time for a 20-mile
motor drive to San Salvador, the capital.
GUATEMALA CITY By special parlor
car train thru 80 miles of beautiful trop-
ic jungle to mile high Guatemala City.
ANTIGUA, GUATEMALA Founded as
the Spanish capital in 1543.
MAZATLAN, MEXICO Mexico’s lead-
ing Pacific seaport.

HAVANA Always a favorite port of

call for eastbound travelers,

sails every two weeks from New York,
San Francisco and Los Angeles. See your travel agent or

GRACE LINE

914-I5th St., N. W.
Washington, D.C.
White Bldg.,
Seattle, Wash.

230 N. Michigan Ave.,
Chicago, III.
525 West 6th St.,
Los Angeles, Calif.

a is not a pleasant picture.

But tomorrow it may be you.
You never know when a blowout
may catapult your car and your
loved ones into a ghastly smash-
up. Tomorrow, it may become
your lifelong regret that you did
not have LifeGuard* Tubes —
Goodyear’s revolutionary new inven-
tion that makes the worst blowout

as harmless as a slow leak.

Even when your tire blows wide
open this mira-

“My front tire blew out
while I was driving to
Santa Fe at high speed,”
writes Tom James,
Ranch Manager, Carri-
zozo, New Mexico, “but

cle tube retains
enough air in

For safety’s sake, remember:
THERE IS NO SUCH THING AS A
BLOWOUT PROOF TIRE!

its patented “inner tire” to keep
your casing inflated —to keep your
car running straight and true. It
prevents that sickening lurch that
tears the wheel from your help-
less hands — it gives you ample
time to slow down to a safe easy
stop without swerving, o matter

’ ! , a9 /
how fast you have been driving:

LifeGuard Tubes have saved
thousands from serious accidents.
Don’t delay giving your family
their sure safety another day —
you can’t buy better protection to

save your life!

TAKE THE TERROR OUT
OF BLOWOUTS

We

This remarkable safety tube
consists of a reserve two-ply
inner tire INSIDE the regula-
tion tube, both inflated by
the same valve. When the
casing blows out only the
outer tube lets go. The inner
tire holds enough air to sup-
port the cor without lurch-
ing until you can come to
a safe stop.

FOR PASSENGER CARS
TRUCKS + BUSES

La,

wai 4 _
sa i
— >) asl
B

¥

¢

ge

my car did not swerve be
an inch. I slowed down... found tire
ripped wide open but LifeGuard Tube
still held enough air to bold up car. It

might have been a fatal accident...

) 4 *LIFEGUARD is 2 trade-mark
of The Goodyear Tire &
Rubber Company, Inc., and
is protected by patents ap-
plied for

July 3, 1937 NEWS-WEEK

that 12 per cent is the correct rate of in-

terest.
Webster Knows All: In your Number 23, ¥-
‘ June 5, you employ on page 37 the word co
P Pullman: In your‘issue of May 29 in pa - ~! ‘
: commenting about a movie star traveling Raeranno wring ” Webster knows only the word S
on the Twentieth Century Limited from Considering your exemplary style and ar
New York to Chicago in a drawing room at
- orthography I would like very much to
4 $15.95 less than last year’s rate, you have have your opinion in this case -
> somewhat understated the facts because F BLUMENTHAL ,
when the present rates were adopted the Oakland, Calif "
cost of using a room by one passenger was 2 F
the subject of additional reductions. The EDITORIAL Nore: Mr. Blumenthal is mis-
rs actual figures illustrate this: informed. The unabridged Web :
: ‘ 4 ge ebster knows
For one person’ to occupy a drawing both unwieldy and unwieldly—which are
room between Chicago and New York prior synonymous 2 ,
to June 1, 1936, exclusive of extra fare, - , 5 tee
would have cost $96.90. Since June 1 the it
cost is $49.10—just about one-half. This is Punster: Page 3 of your June 12 issue: V
due to the reduction in rail-fare require- “Editorial Note: The note translated: nc
ment from a minimum of two fares to a ‘NEWS-WEEK thanks Tzeng-Jiueq Suen for
€* minimum of 114, and the Pullman Com- clearing up the confusion’.” It appears that yo
pany’s new lower single-occupancy charge the same note might have been translated It
’ as well as the elimination of the surcharge. as “NEWS-WEEK thanks Tzeng-Jiueq Suen at
You will see from this there has been a for clearing up the Confucian.” co
4 substantial reduction in the cost of com- DAVID V. LANSDEN m
P , fortable rail travel. Cairo, Ill. th
CWS E. P. BURKE oe
, ei - Passenger Traflic Manager The Giftie Gie Us: Please do not send us
’ , icago, itl. any more copies. The country is full enough
} ae now of damn cheap propaganda sheets of
Twelve Per Cent: In your issue of June The Saturday Evening Post-Chicago Trib- r
4 om ce b ars : une type without endeavoring to disgrace
12 you had an article on Commercial Credit . so
§ Co. in which the so-called “6 an the intelligence of the American people by all
* ; per cent” adding any more. This terrible stuff anc ac
e plan for installment financing was re- }) 5 on an mr : a oo eo Sus and pe
ferred to as “giving an interest rate of 18 € papers who printed it were most cer- th
: ae i ire tainly repudiated at the last election. r
§ | Det cont per aunum. Haven't you birds found that out yet? “
, It does seem too bad that when writers No aged = anet this. out yet: do
‘ , , 2 | write about something with which they » FOU Wont Prm rs ik Clie T
¢ What are the real | are not definitely familiar they are not , , _ as
4 ; : . ce , , Ladysmith, Wis.
P P 4 4 either sure to have their facts right or per- ré
reasons for last week’s ; mit someone who is familiar with the sub- . . : gate
’ J m ject to review the article. Most anybody ever Norma otton: Economic fal- WwW
> headlines. What whis ’ ought to realize that 6 per cent on the face lacy and stupidity reach a new height in gr
per in a diplomatic ear | of a note payable in twelve monthly in- the proposal to apply the “ever-normal we
4 stallments is less than 12 per cent per an- granary” scheme to United States cotton, “D
--- what seeret confer- § | num—not 18 per cent. because the foreign markets for United ve
P A. E. DUNCAN States cotton are being destroyed by trade at
ence ... what hidden Commercial Credit Co. barriers. le:
Baltimore, Md. Formerly, the United States supplied 60
on eaused 3 pplie
human emotior per cent of the world’s requirements. Now,
the news to break as it ‘ EDITORIAL NOTE: NEWS-WEEK regrets an it supplies between 40 and 45 per cent.
r } unfortunate error. Financial experts agree This year the world will consume 30,000,-
did. $ el
| be
§ NEWS-WEEK seeks and : ar
< a
finds this news behind- ; x t oo S - « E - B ™
(
2 the-news ... brings to 3 Registered U. S. Patent Office i
$ youadeeperandmore | , be , , fa
$ thorough understand- Raymond Moley, Editor S. T. Williamson, Executive Editor ha
2 ing of the world’s sig- Editorial and executive offices: Rockefeller Center, New York, N.Y. -
$ nificant events. It gives ei
W
you the reason why tor INDEX for JULY 3, 1937 ty
2 the headlines of today. COVER—The Second Horseman: And there went out an- ee
. , —_ ther horse that.was red: and to him that sat thereon it w
‘ I S- — : as th
Subscribe to NEW given that he should take peace from the earth ... anda da
WEEK now. The cost is great sword was given to him. Apocalypse, 6:4 (See Spain).
small ...only 84 for ; News-Week from European
~ 4
one year— 52 issues. ee 6 2 ete a SE OO he ik n- ee CS B
. , j Tr
2 ‘ Gen 2 6 le = oe Sr ee, SR. ee ae ee ee BD W.
> » N 4 th
} Mail The Coupon Now Ere | os
try
J. E. Lowes, Jr. er ee a: | Ee ee ee an
an ‘ at
Circulation Mgr. OO lll *
> =
ae: th
, News-Wrex Pas: ENTERTAINMENT (Screen, Stage) 20 SCIENCE ......... 25 —
1270 Sixth Ave., N.Y.C. on
FOR YOUR INFORMATION . . 34 are rr te er ee ta
Send me News-WeeEk for 1 }
4 ’ FOURTH ESTATE ...... 32 TODAY IN AMERICA ... . 36 pit
yr. $4 2 yrs. $6 Dl:
FRONT PAGE TRANSITION od
cabestels thdtimbtene dabdansdothics si me
er:
aoe ee Nee oe PUBLISHED BY WEEKLY PUBLICATIONS, INC., 350 Dennison Avenue, Dayton, Ohio. Entered as second class matter February 13, 1933,
4 at the Postoffice at Dayton, Ohio, under the Act of March 3, 1879. EDITORIAL AND EXECUTIVE DEPARTMENTS: Rockefeller Center, 127°
Sixth Avenue, New York, N. Y. VINCENT ASTOR, Chairman; MALCOLM MUIR, President; S. WINSTON CHILDS, JR., Vice President: to
a sees ee ee eee GORDON S. HARGRAVES, Advertising Director; F. D. PRATT, Business Manager; CHARLES F. BOMER, Secretary-Treasurer; J. E. LOWES, Fe
. 717 4 JR., Circulation Manager. Publication Office: Dayton, Ohio. SUBSCRIPTION PRICES: United States, its territories and possessions, Canada, th
4 Cuba, Mexico, Central and South America: one year, $4; two years, $6; three years, $8; single copies, 10 cents. Add $2 per year foreign post '
4 age for all other countries. Two weeks’ notice required for change of address. Please give address to which magazine is now being delivered
4 as well as new address. Annual subscribers may have NEWS-WEEK sent to them on vacations by giving two weeks’ notice of itinerary.
caitlin S$ | July 3, 1937 Copyright, 1937, by WEEKLY PUBLICATIONS, Inc. Volume X, No. !

Jul
NEWS-WEEK July 3, 1937

000 bales, an all-time record. But of that,
the United States will supply only 13,000,000
bales, while foreign producers will supply
about 17,000,000.

What will the government do with the
cotton it accumulates in the ever-normal
granary? There.will be no market for it.
Consequently, it will exist only as a burden
and as an embarrassment.

No friend of the cotton South will ever
wish the ever-normal granary atrocity on it.

WALTER PARKER
Directing Economist
Interior Bureau of Economics,
New Orleans, La.

—

Habit: Life might not turn black but
it would be very empty without NEWwS-
VEEK. It has become a habit which will
not break easily, I fear.

This last issue is great [June 19]. I hope
you will continue to use the same cover.
It is not necessary for me to say anything
about the inside because as far as I am
concerned the same high quality is always
maintained. In fact I even enjoy reading
the advertisements.

LORRAINE JOHNSON

Chicago, Ill.

a

Solution: James Nangle’s problem
(NEWS-WEEK, June 19, page 5) has been
solved very simply by a 5-year-old of-my
acquaintance. The youngster, indulging the
perennial youthful penchant for taking
things apart, had his terrestrial globe out
of the stand—and replaced it “upside
down,” i.e. with the South Pole on top.
True, the lettering was upside down, but
as my young friend has not yet learned to
read, it matters not at all.

[ suggest to the gentleman in New South
Wales, and to all who are concerned with
giving children a proper conception of the
world as a ball with neither “top” nor
“bottom,” in either hemisphere, that the
very best thing is to teach children to look
at the globe both ways before they have
learned to read.

A. ARNOLDSON

Missoula, Mont.

a

No Fluke: There are probably 30 golf-
ers in this country who consistently score
better than Sam Parks Jr. Perhaps there
are more, but this, like Sam’s is a good
round figure.

However, at the Oakmont Country Club
in 1935, these 30 or more golfers either
forgot to score better than Sam, or else
they were so busy kicking about the “un-
fairness” of the course that they didn’t
have time to play golf. In either case, the
fact that Sam won the title is now common
knowledge.

In a golf tournament such as the Na-
tional Open, one does not, to quote NEws-
WEEK, “fluke” the title. Instead, one mere-
ly, by the simple process of playing the best
golf, wins it.

Take it easy men. Sam did not “fluke”
the championship. Neither did Ralph Gul-
dahl.

JAMES ALLEN

Sewickley, Pa.

+

Jungle Refugee: No wonder Samuel
Thurston’s Congressman (June 19 NEews-
WEEK, Letters) is bewildered when he
thinks of Westchester and his countless
commuting constituents! I know that coun-
try. And have no doubt that all the beasts
and malpractices he lists flourish there in
abundance.

A week end spent among the natives of
that unregenerate jungle turned my hair
white: after one party there the bats, mole
crickets, impotent hogs, and hungry moun-
tain lions marched right into my room.

It may look civilized. But—the air is
pitted with profanity when its inhabitants
Play golf; their homes reek with the mal-
odorous miasma of contract-bridge post-
mortems; mad drivers maim the outland-
ers who try to stem the stiffened traffic
Stream in their arterio-sclerotic parkways.

Of course it takes more than pamphlets
to change a suburban cesspool into an
Eden, but in the meantime at least credit
the poor legislator for his desperate efforts.

SAUL BREWSTER

Winsted, Conn.

July 3, 1937 NEWS-WEEK

PERFECTLY

GORGEOUS

IS HAVING A WONDERFUL TIME
AT YELLOWSTONE PARK

THE FAMOUS CANYON YOU'RE RIGHT, JUDGE,
OF THE YELLOWSTONE. henna AND THOSE FALLS ARE

THE PARK MORE
BEAUTIFUL

THERE'S NOTHING IN Re

ALMOST TWICE THE
HEIGHT OF
NIAGARA

YELLOWSTONE
MILE AN’A HALF

LAKE IS ABOUTA

WELL, NATU

OF A GOOD

WONDERFUL, BUT | TONGUES A LITTLE
| THINK IT’S TiME |SORE FROM SMOKING.
| ENJOYED THE

HAVE ONE YOURSELF

RE IS |!'D LIKE 70, BUT MY

'VE BEEN LAYING
SMOKE,

TONGUE SORE

: we

>
>

AY,!| SEE YOU )WELL, I'LL TAKE JUDGE, AND PA. |PRINCE ALBERTS
HAVEN'T BEEN “4A TRY AT IT. SAY THIS IS A | SUREIS [CRIMP CUT AND
SMOKING PRINCE | IT CERTAINLY MILD SMOKE JMILO ANO | ITS NO-BITE
ALBERT. ITS ONE | PACKS DOWN YET ITS (TASTY IN [PROCESS INSURES
TOBACCO THAT | NICE ANO EVEN FULL- BODIED): MAKINS’ |COOLTASTY SMOKES
WON'T GET YOUR]|IN THE BOWL TOO! CIGARETTES | WITHOUT A ‘BITE

Pause Mra tr, ¥

IN ADAY'S SMOKING}
a pt"

BEGINNER? ABOVE ALL, YOU
WANT TOBACCO THATS EXTRA

MILD! THE “NO-BITE” PROCESS MAKES
PRINCE ALBERT IDEAL FOR You!

JUST RIGHT FOR
“MAKIN’S”’ CiG-

OCCASIONAL? PIPES GO ON
STEADY DUTY WHEN “CRIMP CUT”
PRINCE ALBERT IS IN THE BOWL

— SMOKES COOLER, SMOOTHER

ARETTES TOO!

50

pipefuls of fra-
grant tobacco
in every 2-oz.
tin of Prince
Ibert

THE

REGULAR? YOu'LL LIKE
PRINCE ALBERT’S MILDNESS,

AND YOU'LL CHEER FOR

ITS RICH, TASTY Bopy!

Copyright, 1937, R. J. Rey

ids Tobacco Comp

RINGE ALBERT

NATIONAL JOY SMOKE

MONEY-BACK OFFER!

SMOKE 20 FRAGRANT PIPEFULS of
Prince Albert. If you don’t find
it the mellowest, tastiest pipe
tobacco you ever smoked, return
the pocket tin with the rest of
the tobacco in it to us at any
time within a month from this
date, and we will refund full
purchase price, plus postage.
(Signed) R. J. Reynolds Tobacco
Company, Winston - Salem, N,. C.

LONG DISTANCE fake
hed businesd

When you hang up after a Long Distance telephone

conversation, your mind and your memo pad are usu-

ally cleared of one more item. No waiting, no wonder-

ing ... the two-way call brings an answer at once.
Busy executives find that systematic use of this per-
sonal service cuts red tape, gets to the point, and helps
them accomplish far more.
Try it yourself. See how /ittle Long Distance

costs—how much it saves—at today’s low rates.

TYPICAL 3-MINUTE NIGHT
STATION-TO-STATION RATES and SUNDAY

Cincinnati-Louisville . .. . et $ .35
Baltimore-New York . ° ‘ 45
Boston-Philadelphia . ‘ -60
Chicago-Omaha ... . 85
Denver-Detroit ... . my + 1.95
Atlanta-Los Angeles 5.2: 3.50

-_— oe wee of ab tk,

hia = =—

NEWS-WEEK July 3, 1937

Vol. X: No. |

NEWS-WEEK

July 3, 1937

LABOR: Guardsmen Distress Strikers; Girdler
Speaks His Mind; Miss Perkins and Davey Disagree

They loved parades. Crowds were
there to see fun or death, and they
found splendor in the flags, the guns,
the guardsmen’s ordered tread—and in
the dimensions of Major Gen. Gilson
Light’s khakied girth.

Along Mahoning Valley roads and
the streets of Ohio steel towns, thou-
sands awaited 7 A.M. and the promised
reopening of Republic Steel Corp. and
Youngstown Sheet & Tube Co. mills.
Some of the strikers carried rifles,
knives, clubs, and some knew where
dynamite bombs were handy. Sheriffs’
deputies and police stood by with fire-
arms, gas, and clubs. The rest—and
they included most of the throngs—
just wanted to see what they could see.

They saw the troops come. They
heard the officers’ yells to nonstrikers:
“There isn’t going to be any work! The
mills are staying closed. Go on home!”
They heard union cheers: “We’ve won
the strike!”

At Youngstown, Warren, and Canton,
picket captains thinned the lines and
sent home their men: with the soldiers
there to do pickets’ work, the union
would win in no time at all.

Frank Purnell, president of Sheet &
Tube, berated Martin L. Davey: “What
right has the Governor to send in
troops to keep men from working?”
Pro-company citizens’ committees, back-
to-work employes’ associations, and
Youngstown’s Mayor, Lionel Evans,
heaped like protests upon the Governor.

They were all a trifle short of sight.
The union hadn’t won the strike; the
troops weren’t going to keep men from
work—not for long. Within the week
the companies, the citizens, the Mayor,
and the Steel Workers Organizing Com-
mittee would alter their first reception
of the soldiers.

The union asked for it.

Death and violence
were in the valley air.
Week-end gunfire had
killed two Youngstown
rioters and wounded
more than 25. From
Akron rubber §fac-
tories and. —Pennsyl-
vania coalfields, union
motorecades sped _ to
help Ohio strikers
combat the reopening
of the mills. In Cleve-
land, three. Federal
mediators begged. the
companies’ ‘to: . delay.
S.W.O.C. leaders tele-

graphed their unsleeping friend at the
White House, and the President wired
Republic and Sheet & Tube: “in the
interest of a reasonable and peaceful
settlement which should be expected
and can be attained,” they should
abandon their plans.

The companies refused: they said
thousands of anti-union men demanded
work. Frances Perkins, Secretary of

‘The right to work is sacred. The right to strike is equally valid.’

Labor, talked by telephone to her
stymied peacemakers and to Governor
Davey; all the circumstances indicated
that she, the mediation board, and the
President guided the Governor’s course.

Habitually a mild man, by nature
and background sympathetic to indus-
try’s views, the Governor proclaimed:
“... I, Martin L. Davey . .. hereby
‘call forth the militia to execute the
laws of the State, to suppress insurrec-
tion, and repel invasion’. . .”

He quoted the State Constitution,
and he also quoted Secretary Perkins:
until her mediators succeeded or failed,
he would maintain her cherished “status
quo.” That meant: Republic and Sheet
& Tube mills would remain closed at
Youngstown, Campbell, Struthers, Can-
ton; Republic’s mills at Warren and
Niles would continue the piecemeal
operations in effect since the strikes
began nearly a month ago. General
Light, Adj. Gen. Emil F. Marx, and
their 5,000-odd infantrymen, machine
gunners, and gas bombers were to pro-
tect strikers and nonstrikers alike: “We
shall pursue a course of strict neu-
trality.”

Generals and privates did their best
—but they and the Governor soon
learned that the very presence of troops
must violate neutrality in the eyes of
one side or the other.

At Warren, the S.W.O.C. welcomed
the first appearance of the troops; next
day Davey ordered the soldiers to en-
force a court order
forbidding interfer-
ence with non-union
workers—and the
S.W.O.C. called a gen-
eral strike. In Youngs-
town, too, union jubi-
lance died aborning.

Mediation failed;
with that hope of
peace went the Gov-

ernor’s reason for
maintaining status
quo; and Davey

amended his orders:
“The right to work is
sacred. The right to
strike is equally valid.
Those who want to
work shall enjoy that
privilege. Those who
wish to remain on
strike ... are entitled
to do so.”

The mills opened.
Military pickets be-

ACME

5

,

Ohio: ‘To suppress insurrection and repel invasion .
came military strikebreakers. First by
the hesitant hundreds, then by the
thousands, Republic and Sheet & Tube
workers returned to the plants. Baffled
and saddened strike leaders reassembled
their picket lines as best they could;
even the revived cries of “scab!” bore
an overtone of defeat across the valley.

In the Federal District Court at
Columbus, an S.W.O.C. suit demanded
that the Governor, the National Guard,
and local authorities be “enjoined from
using the troops to break the strike.”
From Akron, telegrams went to Secre-
tary Perkins and to the President:
“United Rubber Workers of America
calls upon you to prevent this outrage
against labor.”

Union protestants visited Governor
Davey’s office; he informed them that
Secretary Perkins had urged him to
hale the company executives into con-
ference and “keep them there until
they sign an agreement.”

“In private life,” said Davey, “it
would be kidnaping.”

Secretary Perkins: “I never made
any such unwarranted and high-handed
proposal ...I merely suggested that
the State of Ohio had subpoena power
to bring all concerned into a joint con-
ference .. .”

Davey: “I stand on my original state-
ment.”

As for the union’s demand that troops
close the plants: “We have no power to
keep the plants closed. It would be a
moral wrong to use that power even if
we did have it.”

INTERNATIONAL

"WE’: Elsewhere on the strike front,
a like twist of events snared the hap-
less union. At Johnstown, Pa., Gov.
George H. Earle imposed “modified
martial law” to forestall strife between
nonstrikers and invading union miners
—a visitation canceled at Earle’s re-
quest, after he’d stationed 525 State
police in the city.
As in Ohio, the S.W.O.C. recalled its
pickets from the Bethlehem Steel Corp.’s
Pickets at Warren: their substitutes failed them Cambria: plants and piled praise upon

NEWS-WEEK—THE FRONT PAGE July 3, 1937

the troopers; the company, the local
citizens’ committee, nonstrikers, and
Johnstown authorities denounced the
Governor.

There was this difference: Earle
made no pretense at preserving the
status quo. The strike had crippled but
had failed to halt Cambria’s output; the
police ignored Bethlehem’s plea for its
property rights and closed the plants
against all save 800 maintenance men.

Through Johnstown’s pool rooms and
cafés, earnest men bore conflicting pe-

titions: “We, the undersigned .. . de-
sire to commend your Excellency .. .”;
We, the undersigned ... desire to

have the plant operating and demand
protection .. .”

Allied with a newborn Steel Workers
Committee of Johnstown, the Citizens
Committee collected some $60,000 from
“interested businessmen” and hired a
New York publicity firm to plaster
Eastern newspapers with full-page an-
nouncements: “WE PROTEST... It is no
part of the function of American gov-
ernment to force—or to permit anyone
else to force—the individual worker
into surrendering his constitutional
rights... If this can happen in Johns-
town, it can happen anywhere else...
Write Governor Earle ... Write your
Senator or Congressman ... We ap-
peal for funds...”

The committees’ treasurer reported
“an amazing response.” An employe of
the Pittsburgh publicist representing
Ernest T. Weir’s National Steel Co.—
still on the S.W.O.C.’s future list—ap-
peared in Johnstown, and The New
York Times thought enough of union
suspicions to print a report that Weir
was one of the chief contributors.

Johnstown relapsed into guarded
calm. Mayor Daniel J. Shields emptied
his jails of suspected kidnapers, rioters,
and unionists hitherto deemed menaces
to the municipal welfare; the State po-
lice deprived Shields’ vigilantes of clubs
and helmets. At midweek, Governor
Earle considered that the crisis had

July 3, 1937 NEWS-WEEK—THE FRONT PAGE

INTERNATIONAL

Johnstown: ‘Modified martial law .. .’

;
;
\\
a

i.

RS ena |

ACME

5 ne el ae
WIDE WORLD

‘We, the undersigned .. .’

passed: “The choice to be made was
lives or dollars. I chose lives... After
four days of enforced peace to think it
over, I hope the forces of labor and
capital in Johnstown will make the
same decision.”

They had no choice: nominally at the
beck of local authorities, most of the
State police remained. Restricted in
number and scope, pickets returned to
Cambria’s gates; fires rose again in the
furnaces; the police reported that be-
tween 5,000 and 6,000 of Bethlehem’s
15,300 men were back at work, and the
S.W.O.C.’s Johnstown director strove
to hold his lines: “Our fight has just
begun .. .”

ISSUES: The strikes had begun just
30 days before—first against Republic,
Sheet & Tube and the Inland Steel Co.;
then, in the second week, at Bethle-
hem’s Cambria mills. Against all the
companies, the strikers pressed one
plaint: refusal to sign union contracts,
despite the S.W.O.C.’s agreements with
most of the industry—including the
United States Steel Corp.

Originally the issue stood: to sign or
not to sign; so far as published state-
ments indicated, the companies’ execu-
tives would deal orally with the union,
but they would commit nothing to
paper. Last fortnight President Roose-
velt publicly attacked that position; last
week the companies’ verbal and written
expressions reflected a change of front:
none would consider agreement, upon
any basis, with John Llewellyn Lewis
and the Committee “for Industrial
Organization. In every instance, the
statements referred to the C.I.O. rather
than to its steel affiliate, the S.W.O0.C.—
and nobody quarreled with that, since
the C.I.O. dictates its subsidiaries’
policies.

Republic Steel Corp., in a statement
to employes May 26: ‘“‘Republic practices
collective bargaining. It pays high
wages. Why, then, has Republic op-
posed the contract? Because we are
convinced this contract would be mere-
ly the first step toward a later demand
for the closed shop and the checkoff.
These are the real issues. . .”

Republic, Sheet & Tube, Bethlehem,
Inland, in a joint statement to the
President’s mediators, June 24: “It is
not our employes who want a change in
our relations—it is the C.I.O. that wants
a contract. That raises the fundamental
issue ... is the C.I.O. qualified to be a
party to such a contract? We are

unanimous in our opinion that it is
a,

Charles P. Taft, mediation board
chairman; Edward F. McGrady, Assist-
ant Secretary of Labor; and Lloyd K.
Garrison, dean of the University of
Wisconsin Law School, explaining their
failure to settle the strikes: “The ques-
tion ... is whether any agreement at
all should be made... We proposed to
each company this settlement: the mak-
ing and signing of an agreement with
the union, to become effective only if
the union wins an election; the calling
off of the strike and the return of all

WIDE WORLD

Senator Guffey took a hand

the men to work; the holding of a
secret ballot election in the company’s
plants by the National Labor Relations
Board; the agreement to go into effect
if the union wins and to be torn up if
the union loses. The companies re-
jected this proposal. We believe that
the union would accept...”

John L. Lewis: “The S.W.O.C. is only
asking these four steel companies to do
what 158 corporate entities in the steel
industry have already done ... There
will be no compromise .. .”

Tom M. Girdler, Republic chairman,
in testimony before the Senate Commit-
tee on Post Offices and Post Roads:
“The basic issue of this strike is the
right of American citizens to work free
from molestation, violence, coercion,

Tom M. Girdler: ‘Senator, Senator .. .’

and intimidation by a labor organiza-
tion whose apparent policy is either to
rule or to ruin American industry .. .”

‘LIE’: For the profanely outspoken
Girdler, that was a temperate state-
ment—and it was not all his doing.
Through the warm Washington night,
his lawyers and publicity men had
worked over the draft while he slept
at the Carlton Hotel.

In the morning he breakfasted on
bacon and eggs, hired a cab, and pro-
ceeded blithely to the Senate Office
Building. There, in Room 318, the Post
Office Committee awaited his account
of the strike and of his company’s
charges that unionists had interfered
with mail consigned to his plants.

Brusquely he denounced Lewis;
Philip Murray, chairman of the S.W.O.C.
—and the C.I.O.’s Congressional stand-
by, Senator Joseph F. Guffey of
Pennsylvania.

Senator H. Styles Bridges of New
Hampshire had sponsored the com-
mittee’s inquiry into mail interference;
he tapped Girdler’s temper with a
friendly query: “What about state-
ments by Murray and Senator Guffey
that there was a verbal agreement [be-
tween Republic and the union] ?”

“Mr. Murray is a liar and Senator
Guffey doesn’t know what he is talking
about,” Girdler answered.

No committeeman, but attending by
courtesy, Guffey soon had his revenge:
wasn’t it commonly bruited about Pitts-
burgh clubs that Girdler had _ been
kicked out of the Jones & Laughlin
Steel Corp. for giving business secrets
to Republic?

“If that’s the rumor in Pittsburgh,
it’s a lie,” Girdler roared, ‘and who-
ever told you that is a liar . .. The
chairman reproved me a short time
ago, and so I don’t think I am able to
answer you just in the way I want to.”

Toward the hearing’s end, Senator
Theodore F. Green of Rhode Island
reprimanded Girdler for evading a
question and “squirming.”

“Senator, Senator, squirming isn’t
my habit.”

Afterward a newspaper man asked
Girdler what he thought of the com-
mittee’s treatment.

“Fine, all except for that damned old
fool with the spinach up there.”

Senator Green has a gray mustache.

QUOTE: Next day Girdler invited a
few Washington reporters to lunch, and

(

NEWS-WEEK—THE FRONT PAGE July 3, !937

HARRIS & EWING, ACME

everybody understood that the table
conversation was not to be quoted.
Later, the host invited questions, and
the guests quoted printable portions of
the replies: he wouldn’t accept Presi-
dent Roosevelt as a strike arbiter; Ed-
ward F. McGrady was “Perkins’ office
poy,” and Charles P. Taft “liked to talk
about the things his father did.” (A
reference to William Howard Taft, the
late president and Chief Justice.)
Unaware that his remarks would see
print, Girdler took plane for Cleveland;
next day he decried unauthorized pub-
lication and offered the mediators his
apologies: “I merely quoted remarks
made to me by a former administration
adviser . . . [The board’s] members
showed themselves to be fair and
courteous in every respect...”

FORD: NLRB Helps a Friend

By the dictates of the NLRA, and by
the predilections of its members, the
National Labor Relations Board func-
tions as a forceful aid to unionism.
Hence labor leaders rejoice and em-
ployers expect an adverse decision when
the board institutes an investigation.

Last week the NLRB invoked its pow-
er against the Ford Motor Co.—last
major automobile producer to with-
stand the onset of the United Automo-
bile Workers of America. The board
cited Ford for “interfering with, re-
straining, and coercing” workers and
set a hearing July 6 in Detroit. Among
the specific charges: that the formation
of the Ford Brotherhood of America,
Inc. (now disbanded) and the signing
of 60,000 “loyalty pledges” by Ford em-
ployes were intended to defeat inde-
pendent organization of Henry Ford’s
workers.

CANDIDATE: ‘Il am for...’

John L. Lewis is a mighty force in
Pennsylvania politics. His labor vote
helped Franklin D. Roosevelt carry the
State last year; his backing contributed
powerfully to Gov. George H. Earle’s
election; the secretary-treasurer of his
United Mine Workers, Thomas Ken-
nedy, is Lieutenant Governor; recently
Lewis maneuvered Kennedy into po-
sition to run for the Senate next year
against the Republican James J. Davis.

Consequently Pennsylvania politicians
assume that Lewis has a hand in most
of Governor Earle’s important doings
at Harrisburg. By the same token,
Senator Josiah W. Bailey of North
Carolina took an indirect poke at Lewis

gts:

last week with the statement: “The
only compensation in this _ [strike]
situation is that Governor Earle has

what sort of
. His candi-

indicated clearly
President he would be. .
dacy is practically announced...

At Harrisburg next day, Earle lent
Substance to Capitol chatter that Lewis
wants Mr. Roosevelt to smile away
precedent and run again: “Nearly
everything I do,” said the Governor, “is
falsely attributed to personal ambition
:.. 1 want my position definitely under-
stood ...I am for Franklin D. Roose-
velt in 1940...”

July 3, 1937 NEWS-WEEK

ROOSEVELT: In the Shade of an Old

Apple Tree, Sour Congressmen Sweeten

WIDE WORLD

Sit-Down on Jefferson Island

Franklin Roosevelt is at his best with
a lot of people around him. Even in
routine Cabinet meetings his quips of-
ten touch off Henry Wallace’s giggle
and lighten Henry Morgenthau’s sober
face.

Last week the President devoted his
acknowledged way with people to the
service of his party. Out on Jefferson
Island, a wooded dot off the Maryland
shore of Chesapeake Bay, he met 340-
odd male, Democratic members of Con-
gress; he played host at a three-day
stag party and frankly tried to put the
legislators in a better mood with him-
self and his New Deal.

Profound issues and petty irritations
divided some of the flock: the Presi-
dent’s proposals for judiciary reform
alienated a formidable bloc; his cava-
lier disregard for Congressional coun-
sel rubbed raw many a sore. Mr. Roose-
velt knew that some of these differ-
ences went too deep for treatment by
beer and personality, but the picnic
answered one complaint: that the av-
erage Congressman sees the President
as earthlings see the moon.

SWARM: When Democratic addicts
of fishing and duck hunting—the can-
vasback frequents Chesapeake Bay—
founded the Jefferson Islands Club
eight years ago, their prospectus printed
the glories of “restful isolation” amid
oaks, poplars, green lawns, and “spa-
cious white beaches.” Last week the
three daily Congressional batches found

the trees, the lawns, the beaches—and
a swarm of blood-hungry flies.

But there, under an apple tree,
waited Mr. Roosevelt in slacks, a rum-
pled shirt open at the neck, and a vast
good humor. He sang “Happy Days”
and “The G.O.P. She Ain’t What She
Used to Be”; he joined the House Dem-
agogues Club and thereby took his stand
with baby kissers and flag wavers. He
endured an unending flow of soggy
jokes and contributed his share just to
keep things going.

Typical picnic tickler: Chief Dem-
agogue Martin Dies of Texas called
upon the initiate to “favor all appro-
priation bills and oppose all taxation
bills,” and Mr. Roosevelt complied: “I
learned that from Doc Copeland many
years ago.”

Dr. Royal S. Copeland, New York
physician and administration foe, was
one of 60-odd absentees; he had stayed
away with the observation that Con-
gress would invite “manslaughter” by
working through the Summer “to enact
a program of doubtful value.”

Some of the rest were out of town;
a few succumbed to the suspicion that
the President was treating them like so
many children. Senator Edward R.
Burke of Nebraska had a more sub-
stantial excuse—a prior engagement to
speak against the court plan. Senator
Rush Dew Holt of West Virginia said
he couldn’t swim. Representative Mar-
tin Sweeney of Ohio scorned dissimila-
tion: “No amount of fishing, eating, or

9

Ss

We Ba
WIDE WORLD

Senators Minton and Barkley; James A. Farley and (background) James Roosevelt

drinking, is going to change my views
on the President’s court plan...”

A great amount of eating (ham, crab-
meat, cheese, apple pie) and drinking
(iced tea, beer, liquor) took Democratic
minds off the humid heat. Echoes of
“My Sweetheart’s a Mule in the Mine”
floated out to cruising reporters and
Secret Service men. At eventime, navy
subchasers and patrol boats returned
contingents of wobbly picnickers, and
Senator Joseph T. Robinson observed:
“The boys drank a little ice water.”

Senatorial strays clustered about the
President. Josiah W. Bailey of North
Carolina, once a church-paper editor,
discussed the Bible and roses; Millard
Tydings of Maryland talked lengthily
about wheat culture.

Some had weightier objectives in
mind. Representative Maury Maverick
of Texas (see page 19) hoped to urge
a Presidential push for. pending, liberal
legislation. But Mr. Roosevelt turned
him aside with a good-natured mumble;
the President made no direct reference
to his Congressional program, and Ma-
verick reported: “It didn’t seem just
right to ruin a good party by getting
serious.”

DIPLOMA: Sunday night Mr. Roose-
velt and his immediate party boarded
the Presidential yacht Potomac; Rufus
Odom, the club’s ebon man of all work,
said he was tired; and the administra-
tion’s friends and critics assayed the
results.

Dead ahead: flies and charm

Court plan foes noted that some of
the more pliant waverers had warmed
alarmingly in the Roosevelt sun; plain-
ly anxious to curry White House favor
after a brief and futile revolt in behalf
of relief economy, Senator Robinson an-
nounced that he would bring up the
Judiciary Bill soon after the July 4
holidays.

Gist of the first, inconclusive opinion:
the President had bettered his chances
to win a court compromise; to gauge
the effects of soothed tempers and
heightened party morale upon the rest
of his program, Mr. Roosevelt and Con-
gress must await the end of a long, hot
Summer.

FRESHMEN: Senate Class of ‘37

Silence is the rule for Senate fresh-
men, and among this session’s fledglings
none has followed form more faithfully,
than Henry Cabot Lodge Jr.

When he came down from Boston, he
brought to the Senate a Hollywood pro-
file and three distinctions: at 34, he was
youngest of the youngsters;* he was one
of five Republicans snatched from the
November burning; and he bore the
name of his late Senatorial grandfather.

Any one of these earmarks might
have set him a little beyond the herd,
but he preferred the prescribed regimen
for plebes: regular, self-effacing at-
tendance at floor sessions; hard work in
his committees (Interoceanic Canals,
Executive Expenditures, Territories,
Military Affairs, Banking and Curren-
cy). His elders approved—they still re-
membered the goading antics of Huey
Long and discouraged any revival of
freshman exuberance. ‘

Last week Lodge closed the first phase
of his apprenticeship. From his second-
row seat, at the right of the president
pro tem’s chair, he made his debut on
the floor. His grandfather used to hold
the galleries with sonorous eloquence;
the grandson’s speech, urging a census
of the unemployed, was brief and direct.

Afterward such administration regu-
lars as Key Pittman of Nevada and F.
Ryan Duffy of Wisconsin deserted the
majority; 30 of 78 votes backed Lodge
and his proposal to finance a census
with $20,000,000 of the $1,500,000,000
relief appropri tion.

Sadly aware that their party needs
bright youth, the sprinkling of Repub-
lican oldsters favored Lodge with be-
nign accolades. To the rest, the result
indicated likely passage of a census bill
when Hugo Black brings up a measure
differing from Lodge’s in one important
respect—its sponsor is a Democrat.

CLASS: Last fortnight a Demo-
cratic baby, Claude Pepper of Florida, de-
livered a maiden exhortation crammed
with party loyalty and liberalism—
Roosevelt brand. The White House
counts upon him to help offset the dis-
affection of conservative Democrats and
to support the Roosevelt court reforms.

Other freshmen records:
H. Styles Bridges, New Hampshire:
only first-year Republican besides Lodge;

*Rush D. Holt, West Virginia, is 32; but
he served his first term last year.

NEWS-WEEK—THE NATION July. 3, 1937

HARRIS & EWING
Lodge: youngest freshman
usually silent on the floor; in commit-
tees, noisily hostile to John L. Lewis;
sponsoring a proposal for 40-hour week
and 40-cent minimum wage.

Allen J. Ellender, Louisiana: Antag-
onism to sit-down strikes provoked first
speech last March; distrusts administra-
tion’s C.1.O. ties; for court increase.

Prentiss M. Brown, Michigan: apol-
ogized to Senate when he broke silence
to eulogize the late Senator Couzens;
colleagues think he will become able
legislator; for court compromise.

Harry H. Schwartz, Wyoming: They
call him “The Sphinx.”

Guy M. Gillette: embarrassed fellow
Iowan, Secretary Henry A. Wallace, by
disclosing that AAA committeemen
were using franked cards to support
farm legislation; has proved himself an
up-and-coming independent; anti-ad-
ministration on court.

James H. Hughes, Delaware: So un-
obtrusive that his colleagues haven’t
gauged him; for court plan.

Edwin C. Johnson, Colorado: active
chiefly in Indian-affairs legislation;
quiet; independent; for the court in-
crease.

Ernest Lundeen, Minnesota: his ag-
gressive, Farmer-Laborite record in
House indicates that he’ll make Senate
hame for himself—but so far he has
postponed the making. For court in-
crease.

William H. Smathers, New Jersey:
has spent most of his time learning Sen-
ate ropes and being quiet about it; for
court proposals.

_ Clyde L. Herring, Iowa: impressive
in cloakroom maneuvering; silent on
floor; yes on court.

Theodore F. Green, Rhode Island:

rich, pro-labor, pro-administration in
court dispute; abrupt, somewhat distant
in contacts with colleagues.
_ Joshua Bryan Lee, Oklahoma: for
judiciary change; has done nothing so
far to make good his pledge: “A farm
for every farmer, a home for every
family”; says he’ll talk and act “when
the time comes.”

July 3, 1937 NEWS-WEEK—THE NATION

CRIME: Hearst Papers Steal a
March on the Nation's News

Ten years ago two Chicago reporters,
Ben Hecht and Charles MacArthur,
plotted a smash-hit newspaper melo-
drama. For prototypes they chose a
lurid sheet and one of its lurid editors:
Walter Howey, then of the Hearst-
owned Chicago Herald and Examiner,
became Walter Burns of “The Front
Page.” In that profane and speedy
play, an escaped murderer stumbled in-
to Burns’ grasp; Burns planned to
scoop the town. An accident spoiled his
scheme—other papers muscled into his
story.

Last week no accident marred The
Chicago Herald and Examiner’s gift
from the tabloid gods. A _ city-desk
telephone jangled; the caller identified
himself as Robert Irwin, 29-year-old
sculptor, missing since early April. He
said that he had called the Chicago
bureau of New York’s scandal-loving
Daily Mirror, got no answer, and no-
ticed the office address: The Herald
and Examiner building. He wanted
to sell a story—how and why he mur-
dered Ronnie Gedeon, photographic
model; her mother, Mary; and a room-

er, Frank Byrnes, in New York last
Easter. Skeptical editors waited until
they saw their man. When he appeared,
they knew they had a rousing scoop.
Irwin dickered with them—he needed
money for his family, for new clothing,
for lawyers’ fees. Examiner editors met
his price and locked themselves up with
the garrulous artist; soon their head-
lines blazoned his copyrighted confes-
sion.

For 24 hours The Examiner held Ir-
win incommunicado, at the office and in
a hotel. Then the paper surrendered
its prize catch to police. The Hearst
Mirror chartered a plane. Four Hearst
reporters and two detectives flew Irwin
back to New York and a tabloid field
day.

ATLANTA: ‘I See by The Georgian .. ."

Through steamy canebrakes last week
crept Charles Shonesy, fat, Irish, and
city editor of Hearst’s Atlanta Georgian.
He knew where he would be able
to find Sumner Hiram Compton,
alias J. D. Lee, convicted mur-
derer, fugitive from a Banks County
chain gang.

Lee’s attorney, Arthur W. Powell, had
tipped Shonesy to a story which would

NEWSPHOTOS

J. D. Lee: ‘Sorta funny .. .’

scoop the rival Atlanta Journal (‘‘Cov-
ers Dixie Like the Dew”). In a dank
forest, “where not even the high sun of
noon can penetrate,” the lawyer and
the editor met and talked with the con-
vict.

Next afternoon Shonesy broke out a
banner head: J. D. LEE SURRENDERS TO
THE GEORGIAN. Later the same day,
Judge Vivian L. Stanley called police:
“I see by The Georgian that Lee has
surrendered—but where is he?”

At the moment, police didn’t know.
That evening detectives arrested Lee in
a downtown hotel. Gleefully The Jour-
nal quoted a police lieutenant: “Sorta
funny business .. .”

oe

HEADLINER: George H. Earle:
A Rich Man's Son Makes Good

Along the Pennsylvania Railroad’s
route from Philadelphia to Harrisburg,
“Main Liners” live on the right side of
the tracks. In half a dozen villages—
Merion, Haverford, Rosemont, Wynne-
wood, Devon, Paoli—wealthy suburban-
ites emulate English county families.

In this Lilliput Vanity Fair, George
Howard Earle 3rd stands forth as a po-
litical monster. His asssociates in the
Racquet Club or the Merion Cricket
Club (they really play cricket) tolerate
the man for his money and his charm;
they despise the politician as a traitor
to his class. Last week Earle’s tactics
in the steel strike at Johnstown and his
statement promoting President Roose-
velt for a third term (see page 9), con-

oe

THE FEDERAL WEE K*

The President:

Nominated Hugh R. Wilson, Minister
to Switzerland, to be Assistant Secretary
of State.

Senate:

Sent to conference Relief Bill appro-
priating $1,500,000,000 and an_unobli-
gated $223,000,000 balance for 1938 fiscal
year.

Confirmed nomination of Louis A.
Johnson, West Virginia, as Assistant Sec-
retary of War.

House:

Sent to President bill extending for
three years Civilian Conservation Corps;
the measure exempts future CCC admin-
istrative employes from civil service.
Sent to Senate Sumners Bill providing
an alternative to “cumbersome” Senate
impeachment of Federal District judges:
if House finds just grounds, the Chief
Justice may appoint a trial court of
three Circuit judges; any ap eal must be
taken to Supreme Court within 30 days.

Departments:

Secretary of Labor Perkins reported
May gob placements in private industry
by the . S._ Employment Service the
highest in its history; of 5,309,541 appli-
cants, the service placed 240,703, an al-
most 10 per cent increase over April and
80 per cent over May, 1936.

Agencies:

Social Security Board reported a rec-
ord April expenditure for public assist-
ance to 1,667,031 persons: the aged re-
ceived $24,272,824; dependent children,
$3,905,163; and the blind, $802,622.

Condition of the Treasury:
(Week ended June 24)

BRIO $247,028,419.09
| Pr Sarre $139,190,144.23
NN 1 cis 50 waned ecle ae $2,568,984,922.88
Deficit, fiscal year........ $2,773,318,809.00
,. _ Sear $36,393,849,647.45

“Official news not reported elsewhere in this issue.

12

firmed Main Liners’
worst fears.

SPORT: That
Earle was a mav-
erick became clear
duririg adolescence.
When he was 19
(in 1909) he chose
Harvard instead of
Princeton, where
most good Main
Liners’ sons receive
their baccalaureate
buffing.

Instead of serving
the traditional ap-
prentice vice presi-
dency of his fa-
ther’s Pennsylva-
nia Sugar Refinery,
Earle found a job
in Chicago. Social
work occupied his
leisure hours. One
night, according to
legend, he saw a
hungry man reap-
pear 27 times in
the same breadline
—a circumstance
which suggested
to Earle not that
man or the bread-
line were defective,

but that the ma-
chine age faced a
breakdown.

His burgeoning social consciousness,
however, waited upon adventure. In
1916, Earle enlisted for Mexican border
service with the Second Pennsylvania
Infantry. Mustered out a Second Lieu-
tenant, he had no sooner folded his
shavetail’s uniform than ‘the United
States entered the World War. Earle
donated a submarine chaser to the
government, enlisted as a sailor, and
soon took command of his own vessel.
One day, 15 miles off Cape May, flames
broke out aboard ship. Side by side
with his men, Earle fought fire at sea:
“go ahead, sing or whistle if it’ll make
you feel better,” he told his sailors.
They quenched the blaze and Earle re-
ceived the Navy Cross for distinguished
service.

Earle devoted fourteen postwar years
to sport (chiefly polo) and business (in
his fathers’ firm and his own, the Fla-
mingo Sugar Mills). Married to Hu-
berta Potter of Bowling Green, Ky., he
settled in Haverford, sired four sons,
and seemed at last whittled down to
Main Line dimensions.

ANTE: One day in 1932 he talked
with his old friend William Bullitt (now
Ambassador to France). Earle had
$10,000 to spare; he was looking for a
speculative tip. Bullitt suggested the
Democratic party—and Earle raised the
ante. That year he contributed $35,-
00U. When Franklin D. Roosevelt won
the Presidency, he made Earle Minister
to Austria.

In 1934, Earle contributed $140,000
to the Democrats—and became the
party’s first Pennsylvania Governor in
44 years. Four veterans of Pennsyl-
vania’s sly and sanguinary politics

DRAWN FOR NEWS-WEEK BY S. J. WOOLF

Gov. Earle: ‘This damned disease is a nuisance’

managed the neophyte’s campaign: Da-
vid Lawrence, chairman of the State
Committee; Joseph F. Guffey, now
United States Senator; Matt McCloskey,
millionaire contractor and Philadelphia
Democrat, and Edward N. Jones, press
agent, deft political swipe—and later,
WPA administrator for Pennsylvania.

Earle stands with political independ-
ence on his left and expediency at the
right; frequently one hand washes the
other. With equal gusto, he says and
does the apt or the inept; his publicity
is as likely to rasp liberals as Old Guard.

DYNAMO: Friends and foes con-
sider Earle’s' galvanic vitality his
strongest asset and most serious liabil-
ity; his surgent animal spirits engender
a talent for trouble. Specimens: an
Austrian Nazi once fired a bullet into
Earle’s boot heel. In 1936, he cracked
up his autogiro—and 48 hours late!
flew another to win his pilot’s license.
Two years ago his 230 pounds crashed
through the floor of a rickety backhouse
at his brother’s country estate. During
the last Presidential campaign, he
limped for a time—26 yellow jackets’
venom crippled him. Last month he
jumped into the Susquehanna River to
rescue his Manchester terrier Mickey;
this Spring he survived an attack ol
mumps: “I guess the Republicans are
now going to accuse me of being in
my second childhood physically as well
as mentally. This damned disease is
a nuisance...”

Republicans consider him a radical;
he says he is a humanitarian liberal:
“I’m for the underdog. I’ve always
been for the underdog and I intend to
be for the underdog.”

NEWS-WEEK—THE NATION July 3, 1937

ai Mee Glin, i le

SPAIN: ‘Avalanche’ Threatens Europe
On 18th Anniversary of Versailles Treaty

Take a map of the world and draw
two lines—one from London through
Canada to Hong Kong, the other from
London through the Mediterranean to
India and Australasia. These are the
empire’s life lines.

How intact they could be maintained
in a great war is a matter of vital con-
cern to Whitehall these days. Last
week, when a great war seemed more
than possible (that is, still more so than
the week before) all who could crowded
into the House of Commons to hear
Neville Chamberlain make his first
speech on foreign affairs.

The successor of Baldwin, MacDonald,
Lloyd George, Bonar Law, and Asquith
chose a day pregnant with coincidence
and foreboding. To be exact, history
had chosen it for him: almost four
weeks had gone by since Red Spanish
planes had pounced on the German war-
ship Deutschland and blasted 31 of its
crew into Valhalla. The Nazis had
bombarded one town (Almeria) in re-
prisal, but now threatened to shell the
Red capital, Valencia.

July 27, 1914, Sir Edward Grey
warned the House of Commons that
Europe was heading for its “greatest
catastrophe.” Four weeks before that
speech, a Serbian student at Sarajevo
had assassinated Archduke Francis
Ferdinand, heir to the Austro-Hun-
garian throne—and after a month of
diplomatic incubation the greatest ca-
tastrophe broke over Europe in full
fury.

In these days the horse was still a re-
spected beast; the airplane, an imprac-
tical monstrosity. Dreadnoughts were
dreaded. Britain’s ponderous navy
more than adequately protected the
empire’s life lines. Today the westward
route, running alongside a powerful,
friendly United States and past a bris-
tling, but wary Japan, is comparatively
breakproof.

The same cannot be said for the
other. There are rumors that Gen.
Francisco Franco has allowed his Fas-
cist allies secretly to plant at Ceuta
huge guns that could offset those of
Gibraltar across the Strait. The recent-
ly fortified islet of Pantelleria stands as
a fencepost in the barbed submarine
barrier that Benito Mussolini reputedly
has stretched across the narrow water
between Sicily and French Africa—and
the Duce’s air and sea forces represent
a constant threat to Britain’s bases near
Suez.

Far more important: Italy, Germany,
Turkey, and Russia vie for advantage
among British Mohammedans of the
Near East (harbors, forts, oilfields) and
of India. Foreign and local rivalries
have kept these Moslems from rising in
a common front against the British,
but Nazi-Fascist-Turkish cooperation
can bear fruits, as the Ethiopian
crisis showed (riots in Egypt and
in Palestine, and threats of a revolt
in India).

Not for nothing last March did Benito
Mussolini—astride a red steed like the

second horseman of the Apocalypse*—
wave a mighty Mohammedan broad-
sword (made in Florence) over the
fezzes of the faithful at Tripoli and pro-
claim himself protector of Islam.

HIGH MOUNTAINS: Prime Minister
Chamberlain made no mention of the
Moslem problem in his maiden foreign-
affairs sermon, but he dwelt stoutly on
the current peril from conflicting po-
litical faiths. The Spanish war, he said,
“has one peculiar feature, which makes
it specially dangerous—people have
come to look upon it as a war between
two rival systems.”

He referred to those misty creeds,
fascism and communism, and said noth-
ing new. But until now had the British
Government admitted the war danger
in so formal and public a manner.

“The situation is serious but not hope-
less ... There is not one country or
government that wants to see war in
Europe ... Let us try to keep cool
heads... neither say nor do anything to
precipitate the disaster.”

He addressed Hitler and Mussolini as
well as Admiralty bulldogs. The Fascists
needed to cool down. After “closing”
the Deutschland incident by destroying
Almeria, the Reich had found a new, as-
tonishing grievance. It complained that
June 15 officers on the cruiser Leipzig—
then steaming off Oran, French Africa
—had heard torpedoes. They heard them
by means of an electric ear of a type
employed only in the German Navy.
This marvelous device indicated that

*(In King James Bible, Book of Revela-
tion.) Though the Duce—who will be 54
July 29—began his equestrian career at 40,
his peasant thighs took firm hold of the
saddle, in which he manages to look profes-
sional, though not necessarily elegant (a
Paris admirer gave him spurs said to have
been worn by Napoleon). Incidentally, of
all dictators and monarchs, Adolf Hitler
alone never entrusts his sedentary body to
the whims of a quadruped.

NEWS-WEEK mar

Naval concentrations: British (black, two funnels), French (black, one funnel),
German (shaded), Italian (white). Arrows: last week’s chief Fascist drives.

July 3, 1937 NEWS-WEEK

Near Gibraltar: Adolf Hitler mobilized 60 per cent of Germany’s navy for Spanish service...

the projectiles—three of them—had
been aimed at the Leipzig. Three days
later, a submerged U-boat actually side-
swiped the Leipzig’s prow!

Arguing the submarine must have
been Red, Germany in unison with Italy
threatened reprisals amounting to open
war against Valencia. Chamberlain
now busied himself to caress the short
hairs on the thick Prussian neck while
he wagged his head reprovingly. Al-
meria was understandable, if deplora-
ble. But the Leipzig case “does not ex-
clude the possibility of a mistake .. .”
During the war British officers reported
sighting torpedo wakes where there could
have been none ... and honestly be-
lieved they were telling the truth!

After praising Germany’s “restraint”
—the patient Nazis hadn’t shelled Va-
lencia, after all—the son of Joseph
Chamberlain closed with a lofty flight.
He invoked the craft of mountain climb-
ing—a hobby that Britains refined into
the most exacting of all sports during a
period in which his empire-making fa-
ther was shocking the House of Com-
mons with his honesty and courage:

“In high mountains there are some-
times conditions ... when an incautious
move or even a sudden loud exclama-
tion may start an avalanche ... I be-
lieve that although the snow may be
perilously poised, it has not yet begun
to move. If we can all exercise caution,
patience, and self-restraint, we may yet

. save the peace of the world.”

To complete the picture of Britain’s
policy, Anthony Eden added: “There

14

rests upon the Foreign Secretary and
the government an appalling responsi-
bility ... Our armaments will never be
used in a war of aggression but they
might be used in defense of France and
Belgium.” And: “The Fascist powers
are not the only offenders in Spain.
There is no doubt that war materials,
airplanes, tanks, and so forth supplied
to the government side ... by Russia
are very large in quantity.”

After the members had blinked at
this gem of juristic opinion, they voted
the government confidence 157 to 86.

GUINEA PIGS: They had reason to
believe Britain had quietly warned the
Fascists that any violence against Va-
lencia would mean a general war. They
knew that Britain had summarily ig-
nored Germany’s perplexing demands
for “Leipzig outrage” redress.

Joachim von Ribbentrop-—visibly suf-
fering from nervous indigestion—put
the Fuehrer’s embryo ultimatum before
the four-power committee to keep the
Spanish war in Spain.

(1) Any further “Red outrages” must
be punished with military reprisal by
Britain, France, Germany, and Italy,
jointly. (2) These nations must stage
immediately a naval demonstration off
the Red capital. (3) They must con-
fiscate Valencia’s fourteen submarines
(Ribbentrop later modified this to read:
the Reds must promise their submarines
will not submerge).

For four days and nights he sat in a
star chamber with Eden, whose shiny

black hair is fast turning gray—he was
40 June 12; with Dino Grandi of Italy,
whose Mephistopheles beard turned
gray during the Ethiopian crisis; and
with Charles Corbin of France, whose
tooth-brush mustache has been gray for
some time.

On the last night, Eden sent out for
a bottle of whisky. When the party
broke up, so had the four-power com-
mittee.

“What! Doubt the word of German
officers?” shouted Adolf Hitler in Ber-
lin. His press took the cue: Red “target
practice” against Nazi ships must cease!
The Fuehrer’s own paper, Voelkischer
Beobachter, amplified: “German sailors
are too good to play the part of guinea
pigs amid British diplomats’ ignorance
of the true nature of bolshevism!”’

(In Valencia, Foreign Minister del
Vayo complained: “We feel like rabbits
in a laboratory ... Apparently Ger-
many and Italy have succeeded in ter-
rorizing Britain and France... Inevi-
tably the United States must sooner or
later be called upon to play a decisive
role.’’)

Hitler mobilized 60 per cent of the
fleet for Spanish service, using the
Portuguese harbor of Lagos as a base.
Here two of the Reich’s three 10,000-
ton pocket battleships joined four of its
five 6,000-ton cruisers and a score of
other craft—after which one squadron
steamed excitingly and mysteriously
past Gibraltar into the Mediterranean.

France created a mild sensation by
shooting two heavy cruisers, four de-

N EWS-WEEK—ABROAD July 3, 1937

ee

J

stroyers, and five submarines from the
Toulon base to Bona, Algeria—an ideal
outpost for convoying African troops to
Marseille.

Italy countered with a decree adding
Tripoli to its strategic combination of
naval bases, kept its main forces on the
alert at La Spezia and Gaeta, and or-
dered ships off Spain to keep close to
the 3-mile limit “for protection of
Italian shipping” (and the better to
signal Red movements to insurgent war-
craft).

Britain simply announced that its
Mediterranean forces would remain
stationed at Gibraltar and Malta. They
include the Hood, world’s biggest war-
ship; six cruisers; thirteen destroyers;
and a motor torpedo (mosquito) boat
squadron.

victory will be hers. Madrid will fall,
as Bilbao fell. Spain will be the tomb of
bolshevism, not of fascism.”

Sunday Hitler went Mussolini one
better. Addressing a Nazi meeting in
Bavaria, he not only insisted Franco
must win, but brazenly told why: Ger-
many wants a monopoly of Basque ore
—which British arms makers eagerly
covet. Implicit alternative: return of
the Reich’s prewar colonies, wiping out
one of Versailles’ most humiliating
clauses.

At dawn the next day, eighteenth
anniversary of the peace treaty’s sig-
nature, four warships for nearly an
hour strafed Sagunto—the Saguntum
where in 219 B.C. Roman _ legions
held out against Hannibal for eight
months, giving to Spanish history the

U.S.S.R.: Even Reporters Jitter at
Alice-in- Wonderland Purges

One afternoon last week a _ twelve-
cylinder Packard purred into Moscow’s
airport. Green-tinted, bulletproof glass
concealed the occupants. Then the door
swung open, and Joseph Stalin stepped
out for ceremonies welcoming the re-
turn of Prof. Otto Schmidt and his
North Pole air-line squatters. For more
than an hour the mustached Dictator
chatted merrily, picked up children, and
posed for movie camera men. He might
have been running for election.

With this show of joviality, Stalin
sought to offset a Moscow atmosphere
so charged with intrigue, oppression,
and violence that even veteran diplo-

~~ tie,

NEWS-WEEK FROM GLOBE

+ « « and after a rendezvous at Lagos, one Nazi squadron steamed into the Mediterranean

PROMISE: Benito Mussolini has
done a considerable amount of boast-
ing. He has yet to éat his words—
though he came close to it when the
army he sent to invade Madrid took
a historic trouncing at Guadalajara
(the Duce had planned to announce
final victory the same day he flourished
the Sword of Islam at Tripoli).

Last week he made the boast of the
decade. It amounted to serving notice
on the world that either Franco wins
his war or Italy’s “forest of 8,000,000
bayonets” will know the reason why.
With typical candor he published in his
newspaper, Il Popolo d’Italia:

“Italy has not been neutral in. this
conflict, but has fought; therefore the

July 3, 1937 NEWS-WEEK—ABROAD

first of its many stupendous sieges.

At Valencia, 20 miles north, the gov-
ernment accused Germany of the shell-
ing, then retracted. The government
had its hands full with a new anarch-
ist outbreak in Catalonia, a smashing
Franco tank drive to cut off Madrid,
and defense of Santander against
Mussolini’s Black Arrow division and
50,000 other conquerors of Bilbao.

But a meeting called for Tuesday in
London overshadowed these _ events.
The four diplomats—Eden, Ribbentrop,
Grandi, and Corbin—would sit down
once more to talk about terms. If they
failed, the Four Horsemen of the Apoc-
alypse might well ride out again over
Europe.

mats and correspondents reeled. In a
series of uncensored dispatches, Harold
Denny, cautious New York Times cor-
respondent, cabled: “The tension is so
great that even passing tourists feel it
. . . Day after day the Soviet press...
describes conditions worse than any for-
eigner dreamed existed.”

Denny regarded the situation as one
of the most explosive since Lenin
abandoned pure communism for planned
capitalism in 1923: “Russia is passing
through a crisis which is shaking it to
its bases... The atmosphere must be
like that of Salem in the days of the
witch hunts... It is difficult to believe
Communists in Italy, Germany .. . face
any greater hazards than they face here.

15

ACME

The Terror engulfed Joseph Umschlicht (left) and threatened Klementi Voroshiloff

Here they have been shooting them.”

The wholesale slaughter’s cause be-
wildered Denny: “Either the govern-
ment has staged a frame-up on a gi-
gantic scale or there exists a situation
of unrest, discontent, and active dis-
loyalty amounting ... to a counter-
revolution.”

Last week Stalin’s Reign of Terror
swept along with undiminished blood-
lust. Secret police, prying into every
office of the vast Russian bureaucracy,
made one more big catch: Joseph Stan-
islavovich Umschlicht, Polish-born Sec-
retary of the Soviet Executive Com-
mittee—a post equivalent to Speaker of
the House—and former Assistant War
Commissar.

Correspondents also thought police
held two other prominent victims. Gen.
Yakoff I. Alknis, commander of Russia’s
4,000-plane air fleet, and Sigismund Le-
vanevsky—ace Arctic flyer who two
years ago received the official title, Hero
of the Soviet—had strangely failed to
appear at the North Pole expedition’s
welcome.

Hundreds of smaller fry joined the
thousands already in Russian political
prisons or graves. Unique case: Anna
Ziumbilova, a Crimea Commissar, ar-
rested on the grounds that she embezzled
400,000 rubles, bought a divorce, and
then bribed her lover to marry her.

Other odd arrests: V. Skvortzoff,
Aerial Defense Commissar in the Black
Sea area, for felling workers and do-
mestic animals with a gas-mask acid;
Vice President Daniloff of the Osoviak-
him, 6,000,000-man army reserve, for
using State funds to maintain a luxuri-
ous villa and a private orchestra; Pre-
mier Faizoulla Khodjaieff of the Uzbek
Soviet Republic (Central Asia) for plan-
ning to sabotage cotton crops; Assistant
Director Prokhoroff of a Crimean fac-
tory, for shaving the heads of 60 work-
ers who refused to cut their hair.

This mass jailing seemed the Alice-
in-Wonderland prelude to another spec-
tacular trial of Red leaders. Last week
Andrei Vyshinsky, the Soviet’s crack

16

prosecutor of so-called Trotskyists, an-
nounced: “The trial of Tukhachevsky
revealed a number of new facts.”

Correspondents thought.this heralded
the early arrest of Defense Minister
Klementi Voroshiloff, Stalin’s close
friend but also Tukhachevsky’s defend-
er. Such a trial might air for the first
time the real issue behind the purges:
the struggle for power between Czar
Stalin and the Red Army Marshals.
Chief reasons for this split were the
growing conservatism of the German-
trained professional soldiers and Tuk-
hachevsky’s plan to lure any attacking
army to certain defeat in Russia’s vast
marshes. (As happened to Napoleon.
Stalin insisted the Red Army would
have to carry the war into the enemy’s
territory if necessary; he claimed Tuk-
hachevsky plotted to let Germany
gobble up the Ukraine.)

WIDE WORLD

Léon Blum: still on the job

YES-MAN: Main prop of Stalin’s
power is the all-pervading OGPU (se-
cret police). Last year the Dictator
charged Henry C. Yagoda with Trotsky-
ism, and two months ago the OGPU
chief’s own men locked him in a prison
to which he had sent thousands. Here
Yagoda, a noted alcoholic, refused to
“confess,” despite frequent injections of
stupefying drugs.

To his post—Russia’s second most im-
portant—Stalin appointed a little-known
but powerful and ruthless bureaucrat
—42-year-old Nikolai Ivanovich Yez-
hoff. Gossip attributed to him responsi-
bility for Stalin’s savage execution three
years ago of 117 following the assassi-
nation of the Dictator’s closest friend,
Sergei Kiroff. Since Yezhoff didn’t join
the Communists until 1917, he couldn’t
qualify as an Old Bolshevik and pre-
sumably encouraged the purges of his
rivals.

A masterly schemer and fervent yes-
man enjoying the Dictator’s unbounded
confidence, Yezhoff was reputedly given
the crack 300,000-man secret police
force to curb army “Bonapartism”—a
tendency to absorb political power as
France’s army did under Napoleon.

ss

FRANCE: New Premier Takes Up
Old Game of Who's Got the Gold

Léon Blum was Premier 382 days—a
respectable tenure in the Third Repub-
lic, which has changed governments 104
times since its birth in 1871. The genius
of French Socialism came in on a wave
of proletarian awakening, a few weeks
before the outbreak of the Spanish civil
war. When Rightists forced him out
last week, the proletarian cause had
temporarily weakened.

But Blum was by no means through.
After taking Right and Left blows on
his intellectual chin for twelve months,
he had merely stepped back out of
range in the specially created post of
Vice Premier. In fact, Camille Chau-
temps* (pronounced Ka-mil Sho-tun
with the n nasal and virtually silent, if
you can do it) was able to form a sec-
ond Popular Front government only
after Blum had consented to stand by.

Only. significant Cabinet change: re-
placement of Finance Minister Vincent
Auriol by Georges Bonnet, Ambassado!
to Washington—a banker trusted by the
balky Right wing of the Radical Social-
ist party.

Bonnet inherited a financial impasse
remarkable even for France. He must
somehow conjure up $900,000,000 to
meet this year’s deficit plus an indefinite
sum to operate the nearly empty stabili-
zation fund, which started nine months
ago with $450,000,000.

The only possibilities: new taxes or a
loan. To borrow in the jittery Paris
market Bonnet would need dictatorial
powers—demand for which had forced
out’Blum. And prospects of new taxes
on food, tobacco, and gasoline raised
new, ferocious Communist threats to
quit the Popular Front.

*A political stooge, known chiefly as the
Premier who resigned at the outbreak O/
the Stavisky scandal, 1934.

NEWS-WEEK—ABROAD July 3, 1937

GER
P

It
est d
tiviti
ago t
130,0
Oly
inate
rostr
song:
Balil
Dr. I
micr

Ba
Prop
overs
ders
Adol
polic
dism
twel'
educ

Na
the 1
ister
State
day
Aper
calle
card.
sider
latio
1933

De
brea
Pace
men!
coun

ers
surp:
2.000
agail
Seve
Sync

ler’s
gest
didn
thin
mar

FAR

GERMANY: ‘Happy’ Nazis Sadden
Pontiff and a Submarine Pastor

It was the Summer solstice, the long-
est day in the year. To celebrate fes-
tivities inaugurated thousands of years
ago by their pagan Teutonic forefathers,
130,000 Berliners crowded into the huge
Olympic Stadium. Two bonfires illum-
inated the Swastika-decked speaker’s
rostrum. After mass singing of folk
songs and a military march by visiting
Balilla—young Italian Black Shirts—
Dr. Paul Joseph Goebbels limped to the
microphone: “All Germany is happy...”

Bavarian Catholics considered the
Propaganda Minister’s remark a slight
overstatement. The day before, on or-
ders from Bavarian Interior Minister
Adolf Bayr Wagner, Gestapo agents and
police had closed 966 parochial schools,
dismissed 670 teachers—and ended
twelve centuries of Catholic-dominated
education in Bavaria.

Nazi officials justified their action by
the recent school elections, which reg-
istered a 97 per cent vote in favor of
State-controlled education. The same
day at Castel Gandolfo, his imposing
Apennine Summer retreat, Pius XI
called an emergency conference of
cardinals. The aged, ailing Pontiff con-
sidered: should the Vatican sever re-
lations with Berlin and thus scrap the
1933 Concordat?

Despite barefaced German treaty-
breaking, Secretary of State Eugenio
Pacelli—a 61-year-old Cardinal often
mentioned as the Pope’s successor—
counseled moderation.

U-PASTOR: While Nazi church-bait-
ers promised an “immorality” purge
surpassing last Spring’s roundup of
2,000 priests and monks, the Gestapo
again attacked on the Protestant front.
Seven more pastors of the Confessional
Synod—religious body opposed to the
National, or Nazified, Protestant Church
—joined 43 already abgesperrt—locked
up. They had “taken up collections out-
side church hours.”

Next day Berlin was shocked to learn
that for the first time police had dared
to hold and question the Rev. Martin
Niemoeller. The Confessional Synod
head, a wartime U-boat commander
who described his experiences in “From
Submarine to Pulpit,” has long waged
the Protestant fight against Adolf Hit-
ler’s State church. Nazi pagans sug-
gested that if the 45-year-old pastor
didn’t mend his ways he might soon be
thinking up a new book: “From Sub-
marine to Pulpit to Jail.”

—

FAR EAST: Japanese Premier
Finds He Is No ‘Genius-Type’

It seems that Japan’s vital new Pre-
mier, Prince Fumimaro Konoe, has O-
type blood. Such a revelation would
leave most biologists stone cold—but not
Dr. Tsunemasa Niigaki, the Japanese
Foreign Office’s health adviser. Last

week he became highly excited about it,
or else some mischievous interpreter
misinformed the press.

july 3, 1937 NEWS-WEEK—ABROAD

NEWSPHOTOS

BRITAIN: As the Royal Horse Guards (the Blues) marched into Windsor Castle
Yard for the first convocation of the Order of the Garter in 23 years, this mighty
trooper went sprawling on wet, slippery cobbles—dreaded by all Guardsmen.
Despite his 12-pound medieval cuirass and heavy steel helmet, George VI’s
most embarrassed subject quickly scrambled back into line (and later prob-

ably got 28 days in barracks).

The seven Guards regiments boast of their

crack discipline: since 1660, when Charles II formed most of them, it has
been their special duty to protect the King.

a

“Only superior, full-blooded persons”
with O-blood, asserted the Gaimusho’s
medico, should be allowed to hold gov-
ernment posts: “We no longer want
pale, anemic, genius-type fellows .. .”
These would be A, B, or AB-blooded
fellows.*

But perhaps Dr. Niigaki had merely
meant to imitate the joke-loving Pre-
mier and perpetrated a highly odorifer-
ous pun. In Japan O is affixed (and san
suffixed) to the name of any respected
person. (Thus, if a man named Harris
finally repaid that $2 touch, you would
draw in your breath and say, Thanks
O Harrison, or words to that effect.

*Heresy. In 1930 the Nobel committee
awarded its prize in medicine to Dr. Karl
Landsteiner of the Rockefeller Institute
ed his discovery that many transfusions
ad failed because the wrong type of blood
had been sluiced into the moribund. By
classifying blood into four main categories
—according to their misceability, or degree
in which one type can safely be mixed with
another—he saved thousands of lives. But
there is not the slightest proven relation
between the type of blood and its posses-
sor’s physical and mental characteristics.

Be that as it may, O-Konoe-san last
week continued to enjoy the nation’s
esteem without the help of the medical
profession. Having assured his liberal
admirers he would uphold the demo-
cratic principles he had advocated dur-
ing his term in the House of Peers, he
also ingratiated himself with the army.
He allowed the war lords to present a
bill for $3,833,000,000—to be raised from
the democrats and spent by the Gen-
erals in a six-year armament program.

Then the Prince sent Ambassador
Shigeru Kawagoe to Nanking with an
offer designed to end six years of ill-
feeling between China and Japan.

NATIONAL TRAITOR: Yin Ju-keng
was born 45 years ago in a town near
Fenghua, birthplace of Dictator Chiang
Kai-shek. In early youth he went to
Japan, studied at Waseda University,
and learned to uncover his buck teeth
and suck in his mouth in a typically
Japanese smile.

Still, Yin gave good account of him-

17

self in Chiang Kai-shek’s revolutionary
campaign (1926-8). But when the Jap-
anese invested Shanghai (1932) he de-
parted for the Tokyo-controlled north
with his wife, sister of Japanese General.
- In 1935 Tokyo installed him as Gov-
ernor of East Hopei Province’s 7,000,-
000 Chinese—from whom he culled for-
midable crews for smuggling an annual
$120,000,000 of Japanese drugs, clothing,
and household wares into China. In
Nanking, he became abhorred as The
National Traitor.

Last week Ambassador Kawagoe in-
formed Chiang Kai-shek that Tokyo
was ready to fire Yin and graciously re-
turn East Hopei to Nanking. The only
price: recognition of the Mikado’s sov-
ereignty over Manchukuo.

The Chinese Dictator reputedly
bought himself out of Sian last Decem-
ber by promising his Red captors full
support in their campaign against To-
kyo encroachment. Their motto is “Drive
the Japanese from the mainland!” Fur-
thermore last week he smelled a new
Anglo-Japanese plot for checking Chi-
nese nationalism to the advantage of
imperial trade—and held his peace.

@® In Chinese Turkestan, vaster than
France and bordering Russia and In-
dia, Gen. Ma Ho-shan launched a Mos-
lem revolt against the Moscow-main-
tained regime. Striking by surprise,

he besieged Kashgan—a capital fabled
in the travels of Marco Polo.

PILSUDSKI:

Archbishop Stirs
Crisis by Moving Hero's Body

Like all dictators, the late Marshal
Joseph Pilsudski—founder of modern
Poland—was a strong-willed man. So
is Prince Sapieha, Roman Catholic
Archbishop of Cracow. Two years ago,
when the Marshal died of cancer, the
prelate grudgingly bowed to popular
demand that Pilsudski’s body be placed
in St. Leonard’s crypt—the “Tomb of
Kings”—in Wawel Cathedral at Cra-
cow.

Last week the Archbishop had the
irksome coffin removed from the crypt
to the adjoining Silver Bell Tower.
Poland immediately seethed with fren-
zy: newspapers talked of the prelate’s
“inconceivable effrontery”; 40,000 ex-
service men marched in protest, and
the Polish Cabinet sent its resignation
en masse to President Ignace Moscicki.
The President refused to accept it.

The Archbishop first claimed he
ordered the body removed because of
the crypt’s dampness. Later he ex-
plained that he couldn’t' stomach
the sight of non-Catholics swarming
through the consecrated edifice to visit
the Dictator’s tomb. He maintained
they “frequently disturbed the peace

NEWSPHOTOS

MEXICO: During a period of exile in
Hollywood, Aurelio Manrique eked out
his living with movie-extra jobs—his
great black beard (above) made him
valuable. In Mexico’s central province
of San Luis Potosi—his home—it set
him apart as the most picturesque
politician. Now the Liberal leader is
running for Congress. As he made a
speech at San Luis last week, a squad
of toughs plunged through the audience,
slugged and kidnaped him, clipped his
beard and eyebrows, then turned him
loose. Bloody but unbowed (left, greet-
ing his wife), Manrique charged his
assailants belonged to Mexico’s last
private army, 32,000 strong, controlled
by Secretary of Agriculture Saturnino
Cedillo, maker and breaker of Mexi-
can Presidents.

which the holiness of such a place de.
mands.”

Prince Sapieha’s critics, aware that
only 25 per cent of Poles are non.
Catholics, sneered at this explanation.
They suggested another: the prelate
did it to avoid welcoming to the ¢a-
thedral the head of the Rumanian Or-
thodox Church—King Carol—who ap-
nounced he would visit Pilsudski’s tomb
this week.

The Polish Cabinet begged the Vati-
can to rescind the Archbishop’s order:
patriots urged Parliament to take the
cathedral away from the church and
put it under government control.

Meanwhile, the Vatican’s only word
reached the fifth International Con-
gress of Christ the King, assembled at
Poznan. To seven cardinals, 80 prelates,
and hundreds of other delegates, Pius
XI wrote urging war against “the im-
pious doctrines of communism.”

ae

SUIT: Jury Decides Sea Burial
Doesn't Deserve $100,000 Balm

In Danvers, near Boston, the late
Elizabeth Ann Ahearn taught school,
directed the town’s welfare board, and
acquired a reputation as a zealous Ro-
man Catholic. Six times she crossed the
Atlantic to kneel before the Holy Father
and receive his apostolic blessing.

Two years ago the 68-year-old spin-
ster, the benediction of Pius XI stil!
ringing in her ears, embarked for New
York on the French Liner Ile de
France. One morning off the Grand
Banks of Newfoundland, Miss Ahearn’s
steward got no answer to his knocks on
her cabin door. At noon, however, when
his knocks still brought no reply from
the voyager, he reported the matter to
the captain, who ordered the locked
door broken down. They found Miss
Ahearn’s body in the bathtub. She had
died of a heart attack while bathing
the night before. On the captain’s or-
ders the body was sewed in canvas,
weighted at the feet, and lowered into
the sea while the liner ran at reduced
speed 650 miles from New York.

Last week four cousins of the teacher
lost a $100,000 suit brought against the
French Line in a New York court. The
plaintiffs claimed the line should have
brought the body to port. Because it
was buried at sea instead of in a con-
secrated Catholic cemetery, they de-
manded the money to ease their “mental
anguish.”

Of the hundreds of thousands of peo-
ple who embark on a voyage each year
only a few die at sea. The Cunard
White Star Line had only two deaths
last year. Thirty years ago anyone who
died on the ocean found his ultimate
resting place in the water. Today liners
are larger, carry a few caskets, have a
refrigerated vault, and their doctors
can embalm bodies. The North German
Lloyd and the Hamburg-American
Line always bring bodies to port; other
lines either bring them to shore or bury
them at sea according to instructions
cabled by the deceased’s family. Only
on a small freighter need a passenger
worry about ending in a watery grave.

NEWS-WEEK July 3, 1937

LAWMAKERS: A Texas Maverick
Admires an Old Nebraska Seer

While 400 Democratic Congressmen
picnicked with the President (see page
9), book publishers brought out the
life stories of two legislators who kick
over the traces and won’t stand hitched.
For more than a generation Senator
George Norris of Nebraska has been an
insurgent; now he is the subject of a
salaaming biography. The other book
is an autobiography. Representative
Maury Maverick, as unbranded as one
of his grandfather’s Texas steers, writes
his story at the top of his lungs.

NORRIS: The occupant of desk 27,
just off the Senate’s aisle, spent last
week end in a Naval Hospital bed. Just
below the hospital is the white marble
memorial to a man to whom Norris’ bi-
ographers see resemblance. But the
nearest recorded acknowledgment by
Norris to such flattery was answer to a
question what Lincoln would do if alive
today: “Lincoln would be just like me.
He wouldn’t know what the hell to do!”

The gray little old Nebraskan, who
has the saddest face in the Senate, has
suffered from abuse. Now he suffers
from adulation in Integrity: The Life of
George W. Norris (By Richard L. Neu-
berger and Stephen Kahn. 383 pages,
113,000 words. Vanguard, New York. $3).

The progressive who broke Speaker
Cannon’s Czardom, one of the “little
group of willful men” who opposed
American entry into the World War,
the Al Smith dry Republican, the
Franklin Roosevelt Republican, the fa-
ther of TVA, and the godfather of Ne-
braska’s one-@hamber Legislature—
Norris has lived a full life. About him
is one subject upon which the Commu-
nist Daily Worker and the archconserv-
ative New York Herald Tribune can
agree: his honesty.

MAVERICK: To Norris, Maury Mav-
erick looks up for guidance. About the

July 3, 1937 NEWS-WEEK

Texas Congressman is a mass of roar-
ing contradictions. Even in his given
names. Maury is the name of the Vir-
ginia oceanographer whose charts are
navigators’ bibles; Maverick is an un-
branded steer. Last week he came out
with a rough-and-tumble autobiogra-
phy, A Maverick American (362 pages,
116,000 words. Covici Friede, New York.
$3). It reads as though it had been
shouted through a Dictaphone and
rushed uncorrected to the printer.

Maverick is proud, humble, idealistic,
and hard-boiled. In school and in the
army (wounded .and twice decorated)
he delighted to plague stuffed shirts.
He had a lot of fun getting into trouble
—and in getting out of it. In the pre-
relief days of the depression, Tax Col-
lector Maverick hoboed through the
Southwest in old clothes to find out how
bad things really were. Afterward he
founded a Utopian tramp colony which
worked at first but broke up into an-
archy when some colonists became “cap-
italists.”

“Demagoging is nothing new... Out
in Texas I used to be rated as a pretty
good stump speaker. But I was no rose
bud. I always ascribed evil motives to
my opponents, and I could see a politi-
cal sin ten miles off without field glasses.
I would call an opponent a rascal and
a thief ... Word would get around that
Maury was going to skin somebody
alive. In fact, I would see that word
got around. The crowds would gather.
I would take the hide off... I don’t
do that any more. And yet, I get
elected.”

The most frequent name that Mave-
rick is called is “Bolshevik,” because he
is ardently in favor of economic plan-
ning. He still thinks highly of the Re-
settlement Administration; the thing
wrong with it was Secretary Tugwell’s
use of long words. He quotes a conver-
sation he had with Tugwell when they
were touring Mexico together:

“Then, to prove his point, he [Tug-
well] said: ‘And the workers and farm-
ers, combining their genius and (an-
other word I couldn’t make out), and
they shall form a nodule .. .’

“I blew up completely.

“T said: ‘Rex, I am sore and insulted,

Maury Maverick: ‘I give George W. Norris place as the greatest living American’

and do not want to hear any more.’

“*Why?’ he asked.

“*What in God’s name is a nodule?’
I said.

““A nodule is—’ began Rex.

“Stop! Stop!’ I shouted. ‘Don’t tell
me. Whenever you use a word that I
don’t understand, it makes me mad. The
word nodule is not understood by the
American people, nor is it understood
by me, which makes it worse—and
I don’t want to know what it means
. . . Besides, it sounds like sex perver-

,”

sion’.

i.

HISTORY: An Englishman Says
A Good Word for a Dead Scot

“A monstrous beast, of all men that
now exist or ever will, the most wick-
ed.” History says that of the lower-
ing Hepburn, fourth Earl of Bothwell
and third husband of Mary, Queen of
Scots.

Seven years ago Robert Gore-Brown,
English scholar and playwright, decided
that Bothwell probably wasn’t such an
all-time villain, that he was a savagely
loyal man of action when that was a
good thing to be. In Lord Bothwell and
Mary Queen of Scots (447 pages, 160,000
words. Bibliography, index. Doubleday,
Doran, New York. $4), Gore-Brown
seems to prove his point.

Crossing from France to rule the
Scots, the girl-Queen Mary found a
kingdom rent with highland vendettas.
Across the border in England, the jeal-
ous Virgin Queen kept open house for
spies she sent to the Scottish court. In
this set-up, his fierce love for Scotland
and her Queen goaded Bothwell—who
had no wit for intrigue—into ruthless
action. He had few friends, and his
enemies, who included the two coun-
tries’ most powerful nobles, supervised
the writing of his history.

Gore-Brown rewrites the story of
Bothwell’s defeat in a matter-of-fact
manner, consistently playing down the
dramatic. Though his well-documented
argument is convincing, readers who
like history colorful may find it on the
dry side.

NEWSPHOTOS, HARRIS & EWING

19

ENTERTAINMENT

SCREEN:
Gamut of Russia's Revolution

Romance Runs_ the

Many weeks after production began
on Alexander Korda’s Knight Without
Armor, cast and crew alike referred to
it as “Knight Without Asthma.” The
pun was an affectionate expression of
the studio’s relief at Robert Donat’s
recovery from a long siege of asthma.

Donat (pronounced Doan-at) had been
a victim of asthma for almost a year.
His illness cost him a small fortune in
lost screen work, but he had conva-
lesced sufficiently to win the coveted as-
signment of playing opposite Marlene
Dietrich in the Korda film. Neverthe-
less, on the day that Dietrich reported
to begin work on her first English-made
movie, she learned that her costar had
suffered a relapse and would not be able
to work for several weeks.

Immediately thousands of British
movie fans wrote Korda begging him
to wait production for Donat’s recov-
ery. The producer didn’t feel that he
could afford an unpredictable delay. He
considered rewriting the script so that
Dietrich could be starred alone. Die-
trich, in common with what appeared to
be the rest of England, rooted for
Donat. She countered with the sugges-
tion that they “shoot around” him.
Korda agreed. For four weeks the Ger-
man-born daughter of the Prussian of-
ficer Edouard von Losch worked on the
scenes in which her costar did not ap-
pear.

Meanwhile, the English actor (his
parents are naturalized American citi-
zens living in Bethel, Conn.), popular
star of “The 39 Steps” and “The Ghost
Goes West,” was not doing as well as
could be expected. For three weeks he
struggled painfully for breath; then,
for a period of four days, his doctors
had to keep him in an oxygen tank.

At the studio Dietrich finished her
solo sequences. Production halted. In
desperation, Korda—faced with paying
his imported star’s heavy salary while
she remained idle—decided that another
actor had to be substituted for Donat.
This time Dietrich offered to take a
payless vacation. Her magnanimous of-
fer, coupled with a new English cure
for asthma, resolved the problem. Sev-
eral weeks later Robert Donat reported
on the set for work. His excellent per-
formance in “Knight Without Armor”
conclusively proves that he was well
worth waiting for.

Whether or not the story that tore
Dietrich from Hollywood and Donat
from a sickbed was worth all the trou-
ble is debatable. Adapted by Frances
Marion from James Hilton’s novel
“Without Armor” the script needs all
of Korda’s fine production and Jacques
Feyder’s (“Carnival in Flanders’) ex-
pert direction to create even a sem-
blance of credibility.

A young Englishman (Donat) living
in prewar St. Petersburg joins the Eng-
lish secret service. For no reason that
ever becomes apparent during the

20

story’s development, his superiors ask
him to join the underground Bolshevik
movement. Comes the war—but a stern
Czarist government has sent the Brit-
ish agent to Siberia. A grateful peo-
ple’s government brings him_ back.
Then, in the thick of the ensuing guer-
rilla warfare between Whites and Reds,
the Countess Alexandra (Dietrich) be-
comes his prisoner.

From then on the narrative becomes
a brittle alloy of dulcet romance and
grim realism, which allows Marlene
Dietrich to be alluring and imperturb-
able in court gown and peasant dress, to
expose shoulders and knees in a wood-
land stream and in the sudsy setting of
an old-fashioned bathtub. Everything
considered, although “Knight Without
Armor” is not the Art that might have
been expected from Alexander Korda,
it is superior entertainment.

GREEK LUNTS: Last week the New
York Theatre Guild treated stage-lov-
ing San Franciscans to a gala premiére
of Jean Giraudoux’s Amphitryon 38
(the numeral indicates the 38th ver-
sion of the ancient Greek legend).
Golden Gate celebrities and Guild of-
ficials made up a fancy first-night au-
dience. Critics bubbled over S. N.
Behrman’s American adaptation that
spins a tale of Jupiter (Alfred Lunt)
assuming a man’s streamlined mus-
tache and corkscrew-curled beard to
woo and win Alkmena (Lynn Fon-
tanne, looking quite like the Duchess
of Windsor) while her husband, Am-
phitryon, is off to wars.

After taking 21 curtain calls, Lunt
thanked the Native Sons and Daugh-
ters for their reception, relaxed in a

STAGE: Left-Wing Labor Farce
Belabors the Rich, Slightly

Three weeks ago, groups of Left-
wing labor sympathizers muttered
around the entrance of the Maxine
Elliott Theatre, New York. They had
just heard an announcement that all
new Federal Theatre Project produc-
tions were suspended until the new fis-
cal year, July 1. This meant no pre-
view of The Cradle Will Rock, a musical
play intended to advocate unionism in
steel towns.

Inside the theatre, John Houseman,
producer, and Orson Welles, director,
coped with a fuming cast. Ted Thomas
(real name Thomashefsky), associate
producer, suggested they get a theatre
and put the show on themselves, with
Marc Blitzstein, author-composer,

dressing room with Miss Fontanne
(Mrs. Lunt), and then leaned on Lee
Simonson, set designer, while two
other Guild officials, Theresa Helburn
and Lawrence Langner, opined Jupi-
ter’s Olympian pleasures with Alk-
mena would tickle Broadway’s risibili-
ties next Fall. Directly opposite these
lines anybody can see Alkmena likes
the Greek God’s blandishments.

The Lunts are especially happy
about the play’s promise because they
own about 25 per cent of the produc-
tion, with their friend Noel Coward
coming in for a little slice (Coward
and the Lunts have an agreement
whereby they share in each other’s
plays). Another pleased participant:
Samuel L. M. Barlow, composer of
incidental music for the legend, cele-
brating his return to the American
theatre after several years in France
where he wrote an opera, ‘Pierrot,’
with Sacha Guitry, one of the head
men on the French stage.

Critics’ word-waving: Fred John-
son, Call-Bulletin: ‘The ultimate in
smart metropolitan entertainment.’
Claude La Belle, The News’ Roly-
Poly stage and the city’s fiercest critic:
‘A vehicle the Lunts would naturally
delight in.’

NEWS-WEEK July 3, 1937

July

thumping out the chords and cues.
Blitzstein’s landlady provided the piano,
and Joseph Laurens lent them his Ven-
ice Theatre. They gave a performance,
after a fashion, with some of the
actors emoting from the stage and
others from the audience seats. Archi-
bald MacLeish, class-conscious poet and
magazine writer, made a speech, and
spectators cheered the proceedings.

Next day, Welles, big, brilliant, and
belligerent, accompanied the serious
MacLeish to Washington for a con-
ference with Mrs. Ellen Woodward,
chief of the Women’s and Professional
Projects under the WPA. They wanted
to see Harry Hopkins, WPA adminis-
trator, but he was too busy. Mrs.
Woodward pointed out the administra-
tion ruling could not be lifted in their
particular case. This didn’t satisfy the
musical-comedy crusaders.

They returned to New York, where
rumors spluttered about company head-
quarters: some thought the govern-

ment planned to stop the production be-
cause it dealt with steel-town troubles
at a time when the C.I1.O. had steel-
production centers in uproars; others
insisted officials wouldn’t permit the
presentation because of its Leftist labor
propaganda.

During the last season the Federal
Theatre Project has sponsored Leftist
labor propaganda in plays’ without
whimpering: “Injunction Granted” and
“Power” of the Living Newspaper Unit,
and “Revolt of the Beavers,” a lecture
for children on unionism against “op-
pressors.” The government also pro-
duced Sinclair Lewis’ violent anti-
Fascist screed “It Can’t Happen Here.”

Nevertheless, Houseman wasn’t tak-
ing any chances. Seeking an independ-
ent production, he phoned _ several
active liberals for help. In one day he
raised $2,500. Among the contributors:
Arthur Garfield Hayes, lawyer; Lincoln
Kirstein, writer on ballet dancing; Gif-
ford Cochran, wealthy dabbler in the

NEWS-WEEK FROM WESTFOTO

July 3, 1937 NEWS-WEEK—ENTERTAINMENT

theatre; and Fred Stettenheim, who has
money and a weakness for musical
shows. Helen Deutsch, ubiquitous New
York Theatre Guild publicist, became
titular producer. The new organiza-
tion obtained leaves of absence from
the Federal Theatre Project for the
actors, and on went the play in a bar-
rage of news-column publicity.

Labor organizations and the usual
quota of curious filled the Venice Thea-
tre last week and saw a swinging, slap-
stick musical melodrama full, of deep-
voweled diatribes against employers
and lyrical promises of mighty delights
in unionism. They also saw a novelty:
nothing on the stage but a bluebird-blue
backdrop, Blitzstein and his piano (he
played all of the score and some of the
parts), with an occasional appearance
by tall and bulky Welles, who told a
rambling tale of how the show came
into being; the actors bobbed up
from down-front orchestra and box
seats to sing and speak their pieces.
Welles called the theatrical hybrid a
concert.

The story dates back to the days of
“The Black Crook” or almost any old-
time farcical triumph of right over
evil. Its adolescent seriousness almost
submerged the propaganda in ridicu-
lous fun.

The whole thing is a case history of
that old octopus Mr. Mister (played
with gloating superciliousness by Will
Geer) who owns Steeltown—the plant,
the newspaper, the preacher, the judge,
the doctor, the police, the college, and
anything else handy. He crushes the
poor working folks viciously to provide
luxuries such as musicians and artists
for his social-climbing wife, loafing
boredom for his blasé son and daughter,
and power for himself.

Very sad scenes reveal his brutal
villainy. Nobody escapes; not even a
sincere little streetwalker can make a
living without paying her price to Mr.
Mister’s subsidized cops. She sings a
doleful ditty about “fa nickel under her
foot,” which didn’t turn out to be a
nickel, and she couldn’t eat that night.
Others adequately toss off loud ballads
that reek with sarcasm against the
press, art, and effeminate college pro-
fessors.

Black-out follows black-out in amus-
ing confusion as the ogre’s iron claw
clutches the squirming masses. Then
along comes the hero, a union organizer
brandishing verbal sledge hammers to
smash the thing of evil. Blitzstein
painstakingly makes him a 100 per cent
American (shouted effectively, though
somewhat toothily, by Howard Da Silva,
an alumnus of the Eva Le Gallienne
theatrical enterprises).

In due time, the hero frightens the
villain out of his wits with dire threats
of mass power surging over the trade-
union horizon, and the hapless fellow
cringes away to the bellowing of the
theme song, “The Cradle Will Rock.”
The song pictures vampiric rich cradled
in the soft shade of tree boughs while
just above them roar thunder and
lightning and a storm (symbolizing
organized labor) that will rip off the
boughs and send the cradles tumbling
down.

21

ROWING: Seattle,

Washington;
The Oar Capital of the Nation

As a producer of victories and coaches,
Washington University in Seattle occu-
pies the same position that Notre Dame
does in football. On two lakes flanking
the shores of their campus, Washington
Huskies usually row every month ex-
cept in cold December.

When Hiram Conibear, the Knute
Rockne of rowing, arrived at Washing-
ton in 1906, his mouth spouted tobacco
juice and profanity but few wise words
about oar pulling. For he had been
trainer of the baseball Chicago White
Sox and had never rowed.

After experimenting on a rowing seat
set up in his home, Conibear adopted a
“comfortable” stroke—breaking away
from the long-pull style of the pioneer
crew college, Cornell. He taught his
oarsmen to sing while rowing, to snap
at the start and finish of each stroke.

In 1917, when Conibear fell out of a
tree, landed on his head, and died, the
Conibear stroke lived on. One of his
disciples, Al Ulbrickson, last week
coached three Washington boats to tri-
umphs at Poughkeepsie, N.Y., for the
second year in succession. Despite the
weather, rain and choppy waters, the
varsity set a record for the 4-mile
course—18:33 3/5.

Four days later on the Thames River
in New London, Conn., a Harvard shell,
coached by Tom Bolles (Washington
’26) won a 4-mile race from Yale,
coached by Ed Leader (Washington ’16)
—both boats lowering the upstream rec-
ord. Harvard’s time: 20:02; Yale’s,
20:06 2/5.

At New London, Conn., sunshine brought

22

NEWS-WEBK BY Pat TERRY
Rain ruined the Poughkeepsie Regatta for
all but the most weather-brave spectators

BOXING: Louis Whips Braddock;
Scorned by Johnson and Europe

Jack Johnson, who 27 years ago was
the first Negro to win the world’s heavy-
weight title, is now 59; so down and out
that he exhibits himself as a sideshow
attraction at Coney Island, N.Y. When
he heard the news last week that Joe
Louis had knocked out James J. Brad-
dock and become the second Negro
champion, Johnson flashed his gold
teeth in a sneer:

“Right now I am a much better boxer
than Joe, and give me three months to
train and I’ll lick him.”

No one took Johnson’s comeback plans
seriously. Having repeatedly failed to
horn in as one of Louis’ managers, he
welcomes every opportunity to pan the
Brown Bomber. Others of Louis’ race
hailed his victory with jungle jubilation.

On their home grounds—Chicago’s
South Side, where the fight was held
they disconnected trolleys, lit bonfires
in the streets, demanded and received
free rides in taxis. In New York and
Detroit Negro hotbeds, they rang cow-
bells, danced arm-in-arm, and shouted:
“How do you like that, white man?”

From the opening gong, 32-year-old
Braddock took brutal punishment, but
toward the close of the first round wad-
ed in and floored Louis with a right up-
percut. Red rivulets soon began to flow
from Braddock’s eyes and mouth; from
Louis’ nostrils. By the eighth round,
Braddock was missing his shots by a
yard and was nearly unconscious on his
feet. Louis, after feinting a left, swung
a right haymaker and smashed his foe
to the canvas.

There lay Braddock for several min-
utes, his head in a red pool that became
a foot in diameter. Finally his seconds
carried him to a corner where an auto-

NEWS-WEEK July 3, 1937

INTERNATIONAL

out a Park Avenue of yachts, through which Harvard pulled faster than Yale

grap
sign
tors
face
Li
char
diffe
his i
dead
tim
iSsV1l
that
WU
fath
TI
rope
Loui
man
1936
his s
ing
drav
com

July

Round 1: Braddock pitching, Louis catching

graph seeker vainly shook him for a
signature. In the dressing room, doc-
tors took ten stitches on Braddock’s
face.

Louis, at 23 the youngest heavyweight
champion in history, faced troubles of a
different sort. The newspapers dug up
his father, Monroe Barrow—supposedly
dead for years. They found him a vic-
tim of dementia praecox in an Alabama
isylum. Relief authorities suggested
that Louis, who has earned more than

00,000, fork up $30 a month for his
father’s keep.

The International Boxing Union, Eu-
ropean ring czars, refused to recognize
Louis and named Max Schmeling, only
man who ever whipped him (June 19,
1936), as world’s champion. To clean
his slate, Louis must avenge the Schmel-
ing defeat and, though the fight would
draw a million dollars, it may never
come off. Both will demand 50 per

cent of the receipts—the champion’s
customary purse—leaving nothing for
promoters.

—s

SPORT SCHEMES

® Pole vaulting is a paradoxical sport.
The higher an athlete soars in the air,
the greater risk he runs of breaking his
neck on the drop to earth. Last week
Ben Ogden, track coach of Temple
University,
to a trapeze performer’s net.

® Borrowing the idea from Dick Mer-
rill and Harry Richman, transatlantic
flyers, Sir Malcolm Campbell last week
stowed 34,500 table-tennis balls in his
new speedboat at Glasgow. Reason:
the balls insure buoyancy and they can
be autographed and sold if Campbell
lowers Gar Wood’s water records.

INTERNATIONAL

Round 8; the battery reversed

July 3, 1937 NEWS-WEEK

offered a solution—similar

: . ais ie 2
$ 5 or ee ee a

LIBRARIANS: Recalling 1877,

They Approve a New Invention

In 1877 the year-old American Li-
brary Association held its first con-
vention in New York. To the 66 dele-
gates—six of them women—representing
the country’s 300 libraries, President
Winsor said the Boston library had in-
stalled telephones which he suspected
would prove useful. Of the then recent-
ly invented typewriter he was not so
hopeful.

Last week the same organization
again convened in New York. Of about
13,000 members, 5,251 came to the ses-
sions—an all-time high. The passing of
60 years showed itself in other ways:
the ratio of men and women was com-
pletely reversed, and discussion of a
new invention produced not skepticism
but commendation. The process—micro-
photography—commoner in European
libraries than in this country’s, makes
photographic copies of rare books and
manuscripts readily available to schol-
ars.

As at all conventions, last week’s
speakers doled out both warnings and
laudations. Philip N. Youtz of Brooklyn,
N.Y. cautioned fellow delegates against
“libraryitis,” a sort of “intellectual con-
stipation,” acquired by spending too
much time on books and not enough on
people. Mayor Fiorello H. La Guardia
of New York, declaring that most of his
speeches were made at political meet-
ings, professed amazement at the news
that he was addressing persons all of
whom could read and write.

Praise, too, was ladled out freely.
Librarians heard they possessed “sub-
lime common sense” and that the en-
lightening of adults rested on their
shoulders. A description of the acme of
the wonder-working powers that lie be-
tween the covers of a book came from
F. J. Rowan of the Pennsylvania Indus-
trial School. To his astonished listeners
the prison executive related how a boy
suffering with dementia praecox had
been declared cured after he had com-
pleted a good stiff course of reading,
starting off with Keats’ ode “On a Gre-
cian Urn.”

Stock-taking also had its place. Rue-
fully the librarians compared the coun-
try’s annual expenditures of $46,000,000
on libraries to $1,000,000,000 on movies
and $111,000,000 on soft drinks. But
some good news that the future might
tell a different story came from Michi-
gan last week: the State Legislature
passed a $500,000 appropriation bill for
libraries, the largest sum yet given by
any State. Runners-up this year: Ohio,
$150,000; Arkansas, $100,000.

Pooled statistics from nationwide li-
braries showed what readers want. Less
fiction, and a tremendous demand for
proletarian literature and drama, some-
thing unheard of five years ago. Books
on fascism and communism are reach-
ing the demand group, though borrow-
ers are choosy on these topics: they
want “a fair approach.”

23

_ TRANSITION

NAME REVEALED: Of the son born
to Col. and Mrs. Charles A. Lindbergh
in a London nursing home Coronation
Day (May 12): Land Morrow Lind-
bergh. Land is the maiden name of the
baby’s paternal grandmother.

BIRTHDAY: Edward, Duke of Wind-
sor, 43, June 23. Presents: ties, etch-
ings, a dressing gown, a camera, a
platinum watch, and a noiseless type-
writer, from his bride. From Queen
Mary: a gold and enamel table clock.
In other years, British newspapers used
his birthday to remind the Prince of
Wales he ought to marry. This year
London papers marked the anniversary
with a one-line statement buried in
their social columns.

..- Daniel Carter (Uncle Dan) Beard,
vice president and national scout com-
missioner of the Boy Scouts of Amer-
ica, author and illustrator, 87, June 21.

RECONCILED: John (Caliban) Bar-
rymore, 55, actor, and Elaine (Ariel)
Barrie Barrymore, 21, actress. Mrs.
Barrymore, who made her cinema de-
but in an attraction labeled “How to
Undress in Front of Your Husband,”
announced she would drop divorce pro-
ceedings against the screen’s great lov-
er. “I love only John,” she declared,
and they kissed effusively—for news
cameras.

MARRIED: Louise Converse Mor-
gan, granddaughter of J. P. Morgan,
New York financier, and Raymond
Skinner Clark, Harvard’s 1936 crew
captain, at St. John’s of Lattingtown,
Locust Valley, Long Island. The bride’s
maternal grandfather, Frederick Con-
verse, composer of the first American
. Opera ever presented at the Metropoli-
tan (“The Pipe of Destiny”), wrote
special music for the ceremony.

«+. Constance Cutter Morrow, young-
est sister of Mrs. Charles Lindbergh
and daughter of the late New Jersey
Senator, Dwight Morrow, and Aubrey
Neil Morgan, her brother-in-law, at the
Morrow’s North Haven, Maine, Summer
home. His first wife, the former Eliza-
beth Morrow, died three years ago.

- -Mary Pickford (Gladys Smith
Moore Fairbanks), 43, screen actress-
producer, and Charles (Buddy) Rogers,
34, juvenile actor and dance-orchestra
leader. After the outdoor ceremony on
a friend’s Bel-Air (Los Angeles suburb)
estate, they left for a Hawaiian honey-
moon.

..»Hiram Bingham, 61, ex-Senator
from Connecticut, and Suzanne Carroll
Hill of Baltimore, at the Broadalbin,
N.Y., home of Mrs. Robert W. Cham-
bers, widow of the author.

.-- Evelyn Wagner, niece of United
States Senator Robert Wagner of New
York, and Kenneth Steinreich, wealthy
New York radio executive, at the Long

24

WIDE WORLD

At long last: Mr. and Mrs. Buddy Rogers

Island home of the best man: former
New York Mayor James J. Walker.

ARRIVED: Edna May Oliver (Edna
May Nutter), 51, screen comedienne,
and Boston-born descendant of Presi-
dent John Adams, in New York, from
Naples—with a case of hives from eat-
ing too much caviar on the voyage:
“I scratched my way across the At-
lantic,” boomed Miss Oliver. “I felt like
a monkey.”

DEPARTED: Georges Bonnet, 47,
French Ambassador to the United
States, from Washington, for Paris, to
take over duties as Finance Minister in
Premier Camille Chautemps’ Cabinet.
Bonnet hasn’t resigned as Ambassador:
Mme. Bonnet and their adopted son,
Alain, remained in Washington.

..- Pierre S. du Pont, head of the Del-
aware family, and Mrs. du Pont, from
New York, for a European vacation—
a week before the marriage of their

niece Ethel du Pont to Franklin Roose.
velt Jr. “I... don’t want our absence
to be misunderstood,” he asserted.

APPOINTED: As National Broaq-
casting Co. “Educational counselor”
beginning in September, Dr. James
Rowland Angell, 68, retiring Yale Uni-
versity president.

SICK LIST: Andrew Mellon, 82, for-
mer Secretary of the Treasury (bron-
chitis): “up and about” in his Wash-
ington apartment.

.-. Gov. Harry W. Nice of Maryland,
49, (removal of right eye, injured dur-
ing a fall in his 1934 campaign): in
“very satisfactory” condition at Wilmer
Clinic, Johns Hopkins Hospital, Balti-
more.

DIED: Colin Clive, 37, actor—crea-
tor of the role of Captain Stanhope in
“Journey’s End” on stage and screen—
of pulmonary and intestinal tubercu-
losis, in Cedars of Lebanon Hospital,
Hollywood.

.-. Hugh Lincoln Cooper, 72, builder
of Wilson Dam at Muscle Shoals, Keo-
kuk Dam across the Mississippi, and
the $110,000,000 Dnieprostroy project in
Russia; of arteriosclerosis at his Stam-
ford, Conn., estate.

... Sir Eric Geddes, 61, First Lord of
the Admiralty 1917-18, chairman of Im-
perial Airways, Ltd., and Dunlop Tire
& Rubber Co., at his Sussex, England,
home.

LEFT: By the late George Fisher
Baker, former First National Bank of
New York chairman who died in Hono-
lulu May 30, $15,000,000 “for religious,
charitable, scientific, literary, or educa-
tional purposes, including the encour-
agement of art and the prevention of
cruelty to children or animals...” The
rest of his estate, variously estimated
from $50,000,000 to half a billion dol-
lars, goes to his widow, Mrs. Edith
Kane Baker.

Ambassador Bonnet left Mme. Bonnet and Alain for French finance

NEWS-WEEK July 3, 1937

GIFT: $10,000,000 Fund Makes
Yale Cancer-Research Center

In New Haven, Conn., last week, Yale
alumni back for annual class reunions
jammed into Woolsey Hall, university
dining room and scene of the annual
junior prom, for the alumni luncheon.
Those near by Dr. James Rowland An-
gell, retiring president, noted lines of
emotion traced on his face and detected
emotion in his voice as he spoke.

“It is my privilege,” he said, “to an-
nounce the greatest gift yet made to
Yale [for scientific research] ...I only
wish I could put into adequate words
our feeling of appreciation on receiving
this gift, which represents the greatest
opportunity of its kind ever given any
university .. .”

A lesser president of a lesser college
might then have announced that a rich
alumnus had presented a new dormi-
tory, stadium, or portfolio of endowing
bonds. It was no such small fry as this
that stirred Dr. Angell. To listeners he
announced the greatest gift ever made
to fight mankind’s’ second-greatest
plague: cancer. The fund—$10,000,000
—should be used to seek the cause of
cancer; should not be used to buy ra-
dium, X-ray bombardment apparatus,
and surgical tools which would merely
ease the grief of isolated individuals and
their families. The grant almost exact-
ly triples funds available for basic in-
vestigations into the disease which
ranks below only heart ailments as a
killer of human beings.

Donors of the fund were Starling W.
Childs, New York financier, and his sis-
ter-in-law, Alice S. Coffin, whose father
founded General Electric in 1892. Each
supplied half the huge Jane Coffin
Childs Memorial Fund, which is fig-
ured to yield about $400,000 a year for
cancer work.

Since last Oct. 21, when his wife,
Jane, died of an inoperable cancer,
Childs has besought ways and means
of combatting the disease. Because
three generations of Childs had attend-
ed Yale, he could think of no better
place to go than his alma mater. Be-
fore Dr. Stanhope Bayne-Jones, jovial,
red-faced dean of the medical school,
he laid his problem.

The Yale bacteriologist proposed two
boards, one which would look after
management, another which would at-
tend to scientific details. For his man-
agement board Childs selected his close
friend Frederic C. Walcott, Connecticut
Welfare Commissioner; George Parmly
Day, Yale treasurer and a brother of
the late writer, Clarence Day; Christie
O. Hamilton, former General Electric
associate of. Childs’ father-in-law,
Charles A. Coffin; Albert H. Barclay,
with the donor a member of the Yale
class of 1891; and the Childs sons,
Starling W. Jr., Edward C. and Richard.

Dean Bayne-Jones recruited most of
his staff at. Yale: his predecessor as
dean and his former teacher at Johns
Hopkins, Dr. Milton C. Winternitz, not-

July 3, 1937 NEWS-WEEK

NEW YORK HERALD TRIBUNE

PREPARED PARENTS: Since 1918 New York’s Maternity Center Association
has taught prospective mothers what to do when the baby comes and has re-
cently added a course to cover the same ground for prospective fathers. Center
officials hope paternal care will squelch the age-old child’s attitude toward
father, ably expressed by the one-line joke: ‘That man’s here again.’ Fathers-
to-be learn how to fold diapers for boy babies and for girl babies, how to keep
accurate inventories of safety pins, and how to jounce gas off a newly filled
stomach. Above: two clients learning to feed and bathe oncoming heirs.

a

ed pathologist; Dr. Rudolph John An-
derson, Swedish-born biochemist; Dr.
Ross Granville Harrison, biologist. Each
of these men, world-recognized in his
field, needed a coordinating influence,
a man who had spent most of his life
on specific cancer research. With little
hesitation, Dr. Bayne-Jones selected the
best-known cancer man at the Rocke-
feller Institute, Dr. Peyton Rous.

Together this group will start work
on what probably will become the
greatest assault yet made on cancer. At
first, researchers will be housed within
the Yale Medical School, but may later
get a special building. When and if the
doctors solve this biggest of all medical
enigmas, funds allocated to cancer may
be shifted to study of another disease.
But until that bright day arrives, funds
may be used only on that grim chase—
finding the cause of cancer.

>

MEETING: Speeches at Denver
Include Plague, Stratosphere

Within the broad boundaries of the
American Association for the Advance-
ment of Science nearly anyone inter-
ested in systematized knowledge about
mind or matter can find a comfortable
spot. Its various divisions hold places
for surgeons and astronomers, astro-
physicists and entomologists.

The society meets twice a year: at
Christmastime, when college professors
can leave classrooms, and in the early
Summer, when graduations are over.
For the annual midyear meeting—the
100th held by the A.A.A.S.—2,000 scien-
tists assembled in Denver last week.
Psychologists confined séssions to Den-
ver University buildings; medical men
gathered at Colorado General Hospital;
others spread through downtown hotels

and office buildings. From the resultant
outpouring of fact, figure, and fancy
emerged some findings likely to influ-
ence lives of citizens:

PLAGUE: The United States Public
Health Service, one of the world’s truly
great research organizations, has spe-
cialists for nearly every epidemic dis-
ease: Armstrong for parrot fever, Par-
ran for syphilis, Dyer for Occidental ty-
phus. When bubonic plague, usually
associated with the dark ports of the
Orient, began to crop up in the United
S.ates, Senior Surgeon C. R. Eskey drew
the assignment of studying it.

Apparently the plague was fetched
to this country by a rat passenger
aboard a Chinese freighter. Somehow
the rat got ashore at San Francisco,
and the bubonic-infested fleas he car-
ried hopped aboard a squirrel. For
years the disease existed only on the
westward slopes of the Rockies; then
somehow it managed to leap the Utah
desert.

Dr. Eskey has discovered the sickness
in ground and tree squirrels, field mice
and wood rats. He has also recorded 39
human cases, most recent of them a
sentimental camper who caught the
disease last Summer after he had buried
an infected chipmunk.

About the black death—so-called be-
cause subcutaneous hemorrhages black-
en the bodies of sufferers—Dr. Eskey
professed a great fear: that the dogs
belonging to motor tourists and camp-
ers may pick up infested fleas from
rodents and spread them among human
beings.

OBESITY: Why some persons should
pile on layer after layer of fat while
others remain paper-thin has always
puzzled the medical profession. That
this is not due only to diet—but in-

25

~~

volves delicate body mechanisms—has
been demonstrated.

Stimulating the flabby, reddish thy-
roid gland in the neck has made people
literally melt fat away. The thyroid
governs conversion of food and fat into
energy. Hence increasing its activity
starts people stewing off excess fat.

In 1925 Viennese clinicians discovered
how to add weight. An hour before
mealtime they administered patients
with ten-unit doses of diabetes-prevent-
ing insulin. Driving blood sugar con-
tent downward, the drug created an
artificial sense of hunger. To satisfy
this hunger, scrawny women patients
wolfed enormous meals and put on 5
pounds of weight a week.

Interesting and practical, these pieces
of work still missed the root of the
problem—what causes obesity. One
reason why investigators couldn’t reach
explanations was because they had no
research animal to work on. Rats, cats,
and dogs got fat only up to a certain
point; they refused to reach a state
comparable to that of a 250-pound hu-
man being.

Last week Drs. Eaton M. McKay and
Richard H. Barnes—workers in the La
Jolla, Calif., Metabolic Institute found-
ed by the late Edward Scripps—told
how they had solved the problem of
fattening animals. They utilized slow-
working protamine insulin, discovered
in Denmark three years ago by Prof.
H. C. Hagedorn. This substance, a mix-
ture of ordinary insulin and a trout
sperm, is effective four to twelve times
longer than older insulin.

Rats injected with this new hormone
got enormous appetites and puffed up
like volley balls. Stomachs dragged the
ground when they walked and, when
placed on their backs, they had diffi-
culty regaining their feet. Like human
beings, female rats grew more obese
than males.

That the researchers have created a
race of monstrous rats isn’t in itself
important. But that they have learned
how to produce experimental obesity in
animals may well be vastly important
as a new jumping-off place for further
researches.

SKY HIGH: In 1932 Auguste Pic-
card, Swiss professor who looks some-
what like a straight-eyed version of the
movie comic Ben Turpin, made flying
history when he went ballooning 53,000
feet into the stratosphere. Last month
fire destroyed his craft when Piccard
tried to inflate the $35,000 bag with
hot air.

Undismayed by this event, twin-broth-
er Jean, veteran of a 1934 stratosphere
flight from Detroit, announced to the
Denver convention plans for a new trip
skyward. Instead of using a conven-
tional bag with open bottom—which
allows expanding gases to escape and
prevents bursting-—-he will use 2,000
small, tightly sealed balloons. These
smaller globules are 4 feet in diameter
and will each hoist a half-pound piece
of weather-observing apparatus 20 miles
in the air. At this high altitude reduced
air pressure makes their elastic sides
swell until the balloon. is 15 feet in
diameter.

26

Two thousand of these bubbles, tied
together like a gigantic bunch of grapes,
should lift a 1,000-pound load to a new
stratosphere high. At the peak of the
rise they will start bursting—not, Pro-
fessor Piccard -hopes, simultaneously.
With a few out of commission and a
few others punctured purposely, the bal-
loon should then start earthward.

To test his idea Professor Piccard—
now an American citizen on the aero-
nautics staff of the University of Min-
nesota—will make a trial flight at
Rochester, N.Y., next week.

NEWSPHOTOS

Lawrence Tibbett sang .. .

NEWS-WEEK BY PAT TERRY
what Eugene Goossens wrote

OPERA: Goossens Gives Tibbet}
An Ideal Role For His Talents

For twelve years Tibbett has held a
high place among American singers,
As a troublemaking Rigoletto, mis-
shapen Tonio, and vicious Scarpia he
achieved the reputation of a spanking
good villain.

This Spring he made his first opera
appearance abroad in London’s impor-
tant Covent Garden season. His new
audience lauded his powerful: voice and
mildly condemned melodramatic ten-
dencies. But last week he won all hearts
in the Covent Garden’s premiére of Eu-
gene Goossens’ new opera, “Don Juan
of Manara,” with a libretto by the late
Arnold Bennett.

Tibbett stepped out high, wide, and
handsome as the murdering, seducing,
miracle-instigating Don who eventually
turned penitent friar. It was impossible
to overact such a fantastic personality.
Besides his stage strutting, Tibbett had
to do some vocal gymnastics among
Goossens’ chromatic pitfalls and ever-
changing rhythms.

Forestalling criticism several months
ago, the composer announced that his
latest opera was “not just a bunch of
tunes for the singer.” In many instances
he employed the human voice almost
as if it were one of the orchestral in-
struments.

COMPOSER: The premiére took on
the aspects of a Goossens family gath-
ering. In the audience along with seven
other relatives sat the musician’s 70-
year-old father, an excellent conducto:
in his own name (which is algo Eugene) ;
the orchestra pit boasted one of the fin-
est living oboeists (Goossens’ brother
Leon) and an outstanding harpist—his
sister Marie of the Royal Philharmonic.
With the heavy-set, poker-faced com-
poser conducting in the pit, the picture
was complete—his four daughters
weren’t sufficiently grown up to con-
tribute.

Goossens represents the third genera-
tion of successful musicians by his name.
His standing in England remains un-
questioned. Since 1923 he has spread
his influence in the United States. In
that year the modern-minded Berkshire
Festival authorities commissioned him
to compose a string sextet and the East-
man School of Music called on him to
build up the Rochester Philharmonic
Orchestra, now winning radio and con-
cert notice under the baton of José
Iturbi. Seven years ago he accepted the
post of director of the Cincinnati Sym-
phony Orchestra.

His status as a composer remains par-
adoxical. With more than 70 published
works to his credit, he is best known
for his opera “Judith,” also librettoed
by Arnold Bennett. Critics, baffled by
his great musical knowledge, inventive
musical wit, and sound good taste, still
find some missing spark. One stymied
columnist wailed: “Goossens is too
adroit to become really great.”

NEWS-WEEK July 3, 1937

TAXES: Inquiry Discloses ‘Phony’ Firm
And List of ‘Incorporated Pocketbooks’

INTERNATIONAL

Tax drama: scene from Act II

“Two New York insurance agents
have caused the organization of insur-
ance companies in the Bahamas with a
view to enabling taxpayers to secure
spurious deductions [on their income-
tax returns] . By this means five
prominent Americans sought to evade
nearly $550,000 in income taxes in the
years 1932 to 1936.”

When President Roosevelt, quoting
from a letter of Secretary of the Treas-
ury Morgenthau, let drop this crumb of
information in his message to Congress
June 1, he started a national guessing
game as to the identity of the “five
prominent Americans.”

To learn the correct answers, curious
folk last week trouped into the high-
ceilinged Ways and Means committee
room of Washington’s Old House Of-
fice Building. There, beneath a massive
crystal chandelier, the joint Congres-
sional committee investigating tax-
avoidance methods pulled the curtain
on the second act of its hearings.*

Mason B. Leming, assistant to the gen-
eral counsel of the Bureau of Internal
Revenue, described how the insurance-
company technique works: a person
purchases a policy from a fake foreign
insurance company. He hands over the
entire premium in a single payment
which is promptly returned to him as a
policy loan. Then he deducts from his
income-tax return the “interest” al-
legedly paid on the loan.

Leming named the five men who, the
Treasury charges, used this device.
They weren’t so prominent, but “there
may be many more.”

Richard E. Dwight, former law part-
ner of Charles E. Hughes Jr., son of the

"For Act I, see NEWS-WEEK, June 26,
1937, page 32

July 3, 1937 NEWS-WEEK

Chief Justice of the United States;
Henry W. Lowe, of Johnson & Higgins,
New York insurance brokerage firm;
Lawrence Marx, president of the Cohn,
Hall & Marx Co., New York cotton
brokers; Jacob Schwab, treasurer of
Marx’s firm; and George Thoms, a law-
yer, also of New York. A sixth partic-
ipant, Dr. Winfield Ayres, prominent
New York surgeon, died last April.

According to Leming, the men bought
$15,375,000 worth of “policies” from the
Standard Life Insurance Co., Ltd., of the
Bahamas, formed in 1931 by Walter C.
Baber and William Baylis, partners in
Baylis, Baber & Co., “brokers and tax
consultants.” In the five years 1932-36
the group was said to have deducted a
total of $1,482,427.52 for interest osten-
sibly paid on policy loans, reducing
their aggregate tax liability from $561,-
058.69 to $11,556.72.

“It was all pure fiction,” Leming
pointed out. “It was only a matching
of checks; there wasn’t any loan, the
insurance company had no assets.”

Treasury aides told the committee
that the Bureau of Internal Revenue
disallowed the interest deductions from
the start, but failed to investigate until
last February. At that time the bureau
learned from a tax lawyer that Charles
E. Hughes Jr. was threatening to dis-
solve his law firm unless his partner,
Dwight, settled with the government.*
Only then did the Treasury send an
agent to the Bahamas to check up on
the “insurance company.”

“Then we can thank Mr. Hughes for
disclosing this scheme rather than the

*June 10, the 60-year-old firm of Hughes,
Schurman & Dwight split. Hughes formed
a new partnership, Hughes, Richards, Hub-
bard & Ewing, while Dwight carried on un-
der the firm name of Dwight, Harris, Koe-
gel & Caskey.

revenue bureau,” snapped Senator La
Follette. “Three or four years go by
before it was discovered that this com-
pany was a phony.”

“I entirely agree that the procedure
could be much better,” admitted Under-
Secretary of the Treasury Roswell Ma-
gill. “However, we are doing the best
we can with our staff.”

BIG SHOTS: From. insurance pol-
icies, the testimony switched to personal
holding companies as a _ tax-reducing
device. Guy T. Helvering, Commission-
er of Internal Revenue, pointed out that
the income of such firms is subject to a
lower surtax than the rate applicable to
individuals’ incomes.* Furthermore,
“overgenerous deduction provisions in
the statute” enable many personal hold-
ing companies to avoid paying any sur-
tax.

Then he named 67 “large wealthy
taxpayers who paid lower taxes by tak-
ing assets out of their personal boxes
and transferring them to incorporated
pocketbooks.”

Some of the better-known names:
Andrew W. Mellon, former Secretary
of the Treasury, and his daughter, Mrs.
David K. Bruce; Thomas W. Lamont,
partner in J. P. Morgan & Co.; John
J. Raskob, former chairman of the
Democratic National Committee; Pierre
S. du Pont, board chairman of E. I. du
Pont de Nemours & Co.; Alfred P.
Sloan Jr., chairman of General Motors,
and Mrs. Sloan; Jacob Ruppert, brewer
and owner of the New York Yankees;
Robert P. Scripps and Roy W. Howard,
publishers of the Scripps-Howard chain
of newspapers, and Mrs. Howard; Wil-
liam S. Paley, president of the Colum-
bia Broadcasting System.

In releasing the list, Helvering em-
phasized that “there was nothing il-
legal” in the use of holding companies.
He also declared that the 67 names had
been chosen “at random.”

“You selected some pretty prominent
names—at random,” commented Repre-
sentative Frank Crowther of New York.

REBUTTAL: The Treasury disclo-
sures didn’t go unanswered. Defending
his use of the insurance company de-
vice, Richard Dwight issued a state-
ment that “he had attached to his 1932
income-tax return, in which he claimed
the interest deduction, a disclosure of
the important elements of the transac-
tion.”

Three others among those named also
stated their side of the case. The Treas-
ury had included on its list of personal
holding companies Consolidated Pub-
lishers, Inc., owned by Paul Block, and
The New York Sun, Inc., of Mr. and
Mrs. William T. Dewart.

Through his attorney, Mark Eisner,
Block pointed out that Consolidated
Publishers was formed to facilitate the
purchase of some newspaper properties.
“There was not the remotest connec-
tion or thought of tax saving.”

The Dewarts issued their reply in the
form of a front-page editorial in The
Sun. After reviewing in detail how The

*Surtax on individuals, 4 to 75 per cent;
on personal holding companies, 8 to 48 per
cent.

27

FAMILY: Ninety years ago
John Humphrey Noyes, a
red-headed Yankee preach-
er, founded Oneida Com-
munity, 100 miles _ north-
west of Albany, N.Y. He
and his fellow Perfection-
ists tilled the soil and con-
ducted ‘stirpicultural’ (eu-
genic) experiments.

Wiser than most communal utopians, they knew that agri-
culture alone would not sustain their finances; the Perfectionists
turned to manufacturing. In their earlier years they made wild-
Subsequently, they concentrated on Community

animal traps.

New York Sun, Inc., was formed to give
employes a share in the paper’s owner-
ship, not to evade taxes, the article con-
cluded: “The facts are repeated here so
simply that anybody with a greater in-
tellectual capacity than a Mongolian
idiot can understand them. Even a
Treasury expert should grasp. the
truth.”
This week more names.

ss

OLD GOLD: 40,000 _ Entrants
In Contest Tie for First Place

Last February the P. Lorillard Co.,
makers of Old Gold cigarettes, an-
nounced a first prize of $100,000 and
999 other prizes totaling $100,000 for cor-
rect solutions of 90 picture puzzles. In
case of ties, contestants would have a
second set to solve, then possibly a third
set plus an essay on “The Increased
Popularity of Old Gold Cigarettes in
My Community as a Result of the Old
Gold Contest.”

Some 2,000,000 Americans seized their
chance to make a fortune. For fifteen
weeks they thumbed dictionaries and
lexicons, bothered librarians, traded
answers—and bought $13,500,000 worth
of Old Golds, raising Lorillard’s share
of the total cigarette sales from 5 per
cent to 10 per cent. As the deadline ap-
proached, lists of “correct solutions’—
from 10 cents to $2—plagued Lorillard
efforts to-keep the contest fair.*

Last week, Lorillard’s newspaper ad-
vertisements carried the official answers
to the 90 puzzles and advised contest-
ants that “more than 1,000” had tied for

See NEWS-WEEK, May 8, 1937, page 30.

28

COMMUNITY
PLATE

a re

first prize. According to Lennen &
Mitchell, Lorillard’s advertising agency,
puzzle No. 82 mowed down most of the
losing entrants; correct answer: Jenny
Lind, derived from the phrase “Wide
awake hats” in the cartoon.

Although the actual number of win-
ners was not published, the American
Newspaper Publishers Association
learned from Philip Lennen that about
40,000 had qualified for first place. Two
weeks ago these survivors received by
registered mail a set of 90 tie-breaking
puzzles to be solved in ten days—before
Monday midnight this week.

F. Gregory Hartswick—word expert
who approved the puzzles for Old Gold
after seventeen college girls had checked
them five times to make sure only one
answer applied—admitted the _ tie-
breakers were the hardest he had ever
worked on. Nevertheless Educational
Research Institute of Boston—one of
the original “puzzle experts” which had
sold 50,000 “expert solutions” for 50
cents—had answers ready in four days.
Price: $5.

>

CORN: Refining Firm Squeezes
Dividends From Fallen Profits

In 1901 the late Edward T. Bedford,
a leading executive of the Standard
Oil Co., thought the oil business had
reached its best days. For his son
Frederick, who refused to follow in his
steps, the elder Bedford agreed to help
finance a new company in the young
and blossoming corn-products industry.

The New York Glucose Co. began with
young Bedford as treasurer and Bed-
ford senior as president without pay.

Plate silverware. Their hard-
headed idealism has paid
consistent dividends.
Members of the: Noyes
family still operate Oneida,
Ltd., world’s second largest
silver-plate makers, and em-
ploy first, second and third
generation colonists. Last
week John Humphrey’s son,

NEWSPHOTOS

Holton V. Noyes, manager of the community’s 1,200-acre farm,
entered politics; Gov. Herbert H. Lehman appointed him State
Commissioner of Agriculture. Noyes’ biggest problem: the State’s
$2,000,000,000 dairy industry.

When a big merger of starch and glu-
cose firms took place the following
year, President Bedford kept control of
51 per cent of his company’s stock and
remained a partial competitor of the
consolidated Corn Products Co.

By 1906 Corn Products Co., largely
because the management had continued
to pay out unearned dividends, had fal-
len into financial straits. The elder
Bedford, now thoroughly engrossed in
the corn-products business, resigned
from Standard Oil, merged his company
and Corn Products Co. into Corn Prod-
ucts Refining Co., and devoted the last
25 of his 82 years to building the
world’s largest corn-processing com-
pany. Hisson went out for himself in 1913
and as President of Penick & Ford became
one of his father’s biggest competitors.

Since 1929 Corn Products Refining
has paid its preferred and regular com-
mon dividends without an omission or
a reduction. The depression cut its in-
come from $15,765,000 in 1929 to $8,347,-
000 in 1935 when a corn shortage se-
verely reduced operations. The firm’s
1936 earnings rose to $11,490,000, the
best report in three years.

Last week, the directors met and ap-
proved the regular quarterly dividends
—$1.75 on the preferred, 75 cents on
the common stock, despite less profita-
ble conditions in the corn-processing in-
dustry. The price of corn, which ac-
counts for roughly 60 per cent of a
corn processor’s costs, had shot to a
seventeen-year high of $1.40 a bushel
on May 26, and imports of duty-free,
low-grade starches, selling for about
one-half the domestic cornstarch price,
had increased tremendously since the
beginning of the year.

When stiff competition among the

NEWS-WEEK—BUSINESS July 3, 1937

Jul

Ray Noyes, office manager; P. B. Noyes, president

July 3, 1937 NEWS-WEEK—BUSINESS

eleven major producers kept them from
advancing prices on their products as
corn prices soared, profit margins
shrank. Corn Products’ report for the
first three months of this year showed
a drop in income of more than $1,000,-
000 from last year’s figure.

SUGAR: “Wherever you may be,
you may touch any article you wish
and it can be truthfully said that one
or more of the products from corn do
or may enter into the manufacture of
same.”

To confirm this statement from the
printed lectures which Corn Products
furnishes to colleges, the company lists
some 175 processes and corn by-prod-
ucts ranging from soap, galvanizing,
and fireworks to pie fillers, brewing,
and fertilizers. But most people know
the firm through its Karo syrup, Argo
cornstarch, Linit bath starch, and Ma-
zola salad oil.

With the exception of Mazola, these
products come from the same part of
the corn kernel—the starch contained
in the pulpy endosperm; the rest of the
endosperm, called gluten, is processed
and mixed with crushed corn hulls into
gluten feed for cattle. Mazola evolves
from the oil squeezed from the kernel’s
germ.

Practically two-thirds of the corn
ground and processed by the industry,
however, ends up as corn syrup or corn
sugar, which comes from starch treat-
ed with hydrochloric acid, soda ash, and
steam. In 1884 the government ap-
proved the use of this commercial glu-
cose as a food ingredient and thereby
started a boom for the corn processors;
in 1930 the government again helped
the industry by announcing that the
use of dextrose—refined corn sugar
need no longer be announced on labels
of prepared foods.

Refined corn sugar—a more recent
development—goes into candy, ginger
ale, ice cream, and pastries. Experts
think the annual volume may eventual-
ly swell to 500,000,000 pounds—more
than one-third of the industry’s pres-
ent output of all corn derivatives. If
it does, Corn Products Refining Co. will
benefit most, since the firm controls
patents on the process and collects roy-
alties from competitors who use it.

CO-OPS: Farmers’ Agencies Size
Up Mammoth Marketing Job

By June-end, a pleasant drowsiness
usually pervades the 2,000-acre, tree-
studded grounds of the State College of
Agriculture at Ames, Iowa. Only a few
Summer students, the swans gliding on
Lake La Verne—filanking the campus’
parklike central plaza—and chimes
from the towering 36-bell campanile re-
mind 10,000 Ames residents of custom-
ary collegiate bustle.

But last week, despite a heat wave,
the institution snapped out of its Sum-
mer snooze. From 34 States, more than
1,000 keen-eyed, fast-talking officials—
including a few women and many
horny-handed ex-farmers—invaded the
little agricultural community in the
center of the Hawkeye State. Com-
mandeering campus dormitories (and
overflowing into hotels), they staged a
five-day oratorical and debating jambo-
ree in the big, white college buildings.

The occasion: the annual _ session
(staged at some leading university each
year) of the American Institute of Co-
operation—an educational body devoted
to the interests of agricultural co-ops.

This year, delegates represented man-
agements of 10,500 farmers’ marketing
and purchasing associations, whose 3,-
660,000 members and patrons. put
through 1935-36 business of $1,840,000,-
000 (up 17 per cent).

POOLS: Most people probably think
of a co-op as a fraternal kind of store
operating on a profit-sharing basis. This
is the “consumers’ cooperative” origi-
nated in 1844 by 28 weavers of Toad
Lane, Rochdale, England.

Farmers’ co-ops differ essentially
from consumers’: through collective ac-
tion in processing and marketing, 75
per cent are primarily concerned with
making the best possible deal for pro-
ducers.

Among the pioneers were American
dairymen—in 1810, the first recorded
cooperative cheese factories began op-
erations at Goshen, Conn., and South
Trenton, N.Y. By the 1850s, the co-op
movement had spread to grain: to cut
out middlemen’s profits, growers set up
cooperative elevators, returning sav-

NEWSPHOTOS

Mrs. Julia Burnham, third-generation Noyes

29

" ee 0 om
-_

ings to members as “patronage divi-
dends.”

When the century turned, Midwest-
ern States had hundreds of producer-
owned grain elevators. Statewide co-

‘ ordinating associations sprang up, and

during the World War growers pushed
marketing frontiers into the great
wheat markets, where they established
cooperative selling-agencies.

This led up to the postwar era of
pools—farmers’ groups that sought to
exert a steadying influence on prices
by regulating the flow of supplies ac-
cording to demand. Between 1921 and
1930, ten grain pools handled more than
187,000,000 bushels. Similarly, in 1921
cotton groups in Southern States
launched an extensive pool-marketing
system.

GROUPS: Fourteen years ago, Con-
gress stepped in to aid the agricultural
co-op; it set up twelve Intermediate
Credit Banks to extend loans to farmer-
financing institutions. Later, the ill-fat-
ed Hoover Federal Farm Board and the
New Deal Farm Credit Administration
provided help.

Today, the FCA’s thirteen Banks for
Cooperatives (which lent farmers’
groups $81,294,000 in 1936) play an im-
portant part in financing co-ops in the
most important fields.

Grain: Three thousand marketing
groups—chiefly local elevator co-ops—
with 600,000 members today handle
about one-third of all grain marketed
(in 1935-36 this represented a $360,-
000,000 turnover). Centered largely in
Illinois, North Dakota, Iowa, Nebraska,
and Kansas, they mostly pay farmers
full competitive prices for grain de-
livered at the elevator; any handling
“profits” flow back as patronage divi-
dends. Many co-ops are affiliated with
large State and regional sales agencies,
of which 23 belong to the Farmers Na-
tional Grain Corp.—supervisory organi-
zation which sold $80,000,000 of grain

' in 1935-36.

Cotton: About 15 per cent of the an-
nual cotton crop is handled by 310 co-
ops with an average membership of
1,000; for 1935-36, the cooperative turn-
over of 1,500,000 bales grossed $110,000,-
000. In recent years, most groups have
operated on the “immediate fixation”
pool plan—they pay members prevail-
ing prices on delivery, immediately
hedging the transaction with a futures
sale; earnings are turned back as pa-
tronage dividends. The national organi-
zation—American Cotton Cooperative
Association—includes fourteen large
regional groups and sold cotton worth
$86,000,000 last season.

Dairy Products: Oldest in the busi-
ness, dairy co-ops handle butter, cheese,
milk, eggs, and poultry, and boast the
biggest turnover—$520,000,000 in 1935-
36; 70 per cent of the 2,270 groups (720,-
000 members) are in Wisconsin, Minne-
sota, and Iowa. Land O’ Lakes Cream-
eries, Inc., of Minneapolis, embraces 400
smaller groups, carries on an extensive
advertising campaign, and in 1935-36
sold about 80,000,000 pounds of butter
and 23,000,000 pounds of cheese.

Livestock: During 1935-36, 1,040 live-
stock co-ops with 600,000 members did

30

a $250,000,000 business (up $75,000,000
on 1934-35). The larger groups main-
tain excellent selling agencies in the
big markets, equipped with cattle, hog,
and sheep yards. Biggest organization:
the National Live Stock Marketing As-
sociation; embracing 23 State and re-
gional co-ops, it reported 1935-36 turn-
over at $160,800,000.

Fruit: Of the 1,000-odd fruit and veg-
etable co-ops (1935-36 turnover, $212,-
000,000), California accounts for 30 per
cent and does 50 per cent of total busi-
ness. The largest operator—California
Fruit Growers Exchange—sold $84,000,-
000 of produce last season for 13,000
individual growers; this year it is
spending about $2,000,000 advertising
Sunkist oranges and other products.

GASOLINE: Though still a subsidi-
ary activity, farmers’ cooperative pur-
chasing is today the movement’s fast-
est-growing phase. Of the 10,500 co-ops,
more than 2,000 are chiefly occupied in

HARRIS & EWING
Senator La Follette wanted higher taxes

buying feed, seed, fertilizer, petroleum
products, and groceries.

Since the adoption of tractors, gaso-
line and oil costs are among the farm-
er’s major problems. Today, he has cut
costs to a minimum through co-op fill-
ing stations and bulk-delivery depots;
beginning with a single Minnesota sta-
tion opened in 1921, cooperatives now
operate more than 2,000 scattered be-
tween Pennsylvania and the Pacific
Coast.

Last year, of total co-op purchasing
approximating $315,000,000 (up 25 per
cent), petroleum accounted for $48,-
006,000 (up 20 per cent).

DISCORD: At Ames last week, dele-
gates debated current problems in an
atmosphere of enthusiasm and general
harmony. But they couldn’t steer clear
of one controversial subject—relation-
ship between farmers’ co-ops and non-
agricultural consumers’ cooperatives.

R. W. Bowen, Secretary of the Co-
operative League of America (a con-
sumers’ organization which embraces
a number of agricultural purchasing

agencies), urged farmers to deal direct
with consumers—this, he asserteg
would tend to eliminate the whole ap-
paratus of the profit system.

Rebutting this view, C. V. Gregory, §

veteran Chicago editor of The Prairie

Farmer, surprised delegates with blunt 7
“The farmers’ principal |

comments:
quarrel with the capitalist system is

that it has not permitted him to be. |
come more of a capitalist . . . He dogs |
not want to do away with private |

profit; he wants more of it for himself”
a

WEEK IN BUSINESS

® Congress passed and sent to the

White House a measure continuing for
two years the so-called nuisance taxes—
levies on gasoline, electricity, telephone
messages, automobiles, and a number of
other items, as well as the 3-cent post-
age rate. During the Senate’s considera-
tion of the bill, members approved an
amendment offered by Senator La Fol-
lette to increase income-surtax rates,
But Senator Truman brought a motion
to reconsider and on a second vote the
amendment was defeated.

© Exempt from old-age provisions of
the Social Security Act, the nation’s
1,200,000 railroad employes will enjoy a
pension plan of their own under the
Wagner-Crosser Act, passed by Con-
gress and signed by the President last
week. Under its terms, retired workers
receive payments up to $120 monthly.
The railroads have agreed not to attack
the measure’s constitutionality. Labor
officials therefore feel it stands a better
chance of survival than the two previous
laws on the subject, both invalidated by
the Federal courts.

@ The boxers and their managers
weren’t the only ones who benefited
from the Louis-Braddock fight (see page
22). While the match was in progress,
consumption of electricity in Chicago
increased by 65,000 kilowatt hours or
about 9 per cent above normal, accord-
ing to the Commonwealth Edison Co.—
result of more radios and electric lights
turned on. In New York the effect was
even more marked. The Consolidated
Edison Co. there reported a gain of
171,000 kilowatt hours at 11:15 P.M.,
or 20 per cent over the same time the
night before.

© “To satisfy creditors,” the furnishings
of Samuel Insull’s former penthouse
apartment atop the Chicago Civic Opera
Building went on the auction block.
Although 300 persons paid $1 apiece to
attend the sale, the apartment’s con-
tents, valued at $100,000 brought less
than $26,000. Typical realized prices:
Mrs. Insull’s $2,000 bed, $250; a $3,500
Persian rug, $325; three garbage cans,
$1.50.

® Diners-out prefer Scotch and soda to
a Manhattan cocktail and Manhattans
to Martinis, according to a survey of
drink preferences in Childs restaurants
in sixteen cities. Next in the order are
Old-Fashioned, Bacardi, Orange Blos-

_som, Tom Collins, and Side Car.

NEWS-WEEK—BUSINESS July 3, 1937

Whi
ficially
and L
their }
leadin
Fourt!
ning :

Par
from
ing
name
South
ama
crosseé

Th
count
in th
dor’s

Morg

-

While the season for Panama hats of-
ficially opens May 15 north of the Mason
and Dixon Line, retail sales don’t reach
their peak until around July 1. This week
leading hat stores reported a rush of
Fourth of July business, with volume run-
ning 25 per cent above last year’s sales.

Panamas come not from Panama but
froom Colombia, Ecuador, and neighbor-
ing South American countries. Their
name derives from the days when the
South Americans sent the hats up to Pan-
ama for sale to the Forty-Niners who
crossed the Isthmus to and from California.

The finest hats—those selling in this
country at $50 to $500 apiece—are made
in the village of Monte Cristi, on Ecua-
dor’s mountainous Pacific Coast. J. P.
Morgan, Herbert Hoover, and the Duke

of Windsor are among those owning $500
Panamas. Natives use the silklike fiber
obtained from the broad leaves of the Jip
pijoppa palm—pronounced hippihoppa.
(Ecuadorians, and also Britishers, call the
hats Jippijoppas.)

It takes only a dollar’s worth of fiber
to make a £100 hat; 99 per cent of the
value depends on the skill of the weaver.
The finest craftsmen weave so closely and
form such accurate geometric designs that
the finished product looks like damask.
Contrary to popular opinion, the number
of rings in the crown is not an infallible
index of quality, nor are the hats woven
under water. The weavers, work only in
the damp mornings and evenings. It often
takes eight to ten months to finish a single

Acres of Panamas dry and whiten in the hazy light. Monte Cristi’s almost constant
fog, caused by the Central American current, keeps the sun from shining too brightly

July 3, 1937 NEWS-WEEK—BUSINESS

Co-workers call this Monte Cristi girl
‘the finest hat weaver in the world’

Flattening the fibers makes a
cheap hat look closer woven

]
:

parwernetes BY WILLIAM Lavenae
Worth more than their weight in gold:
fine Jippijoppas packed for shipment

31

_ KIDNAPING:

Ironic Conviction
Stirs Dregs in Lindbergh Case

Mar. 1, 1932, Charles A. Lindbergh Jr.
was kidnaped from his Hopewell, N.J.,
crib. Last week a New Jersey court
ended another chapter in America’s
most fantastic criminal case.

Synopsis of intervening chapters:
(1) During the search for the baby a
Morrow servant committed suicide;
(2) Gaston B. Means—a former Justice
Department agent now serving a fif-
teen-year prison sentence, swindled
Mrs. Evalyn Walsh McLean, Washing-
ton society matron, out of $104,000, for
which he said he could ransom the
child. (3) Colonel Lindbergh identified
as his son the body of a baby found in
woods near Hopewell. (4) Two years
later, President Roosevelt’s recall of
gold notes trapped Bruno Richard
Hauptmann, whose Flemington, N.J.,
trial became a fourth-estate fiesta. (5)
Gov. Harold Hoffman of New Jersey
then jeopardized his political future by
attempting to forestall the execution
of the German carpenter-convict. (6)
Colonel Lindbergh and his family fled
the country to live in England. (7) New
Jersey electrocuted Hauptmann, who
died asserting his innocence. (8) Shofrt-
ly after the trial Edward J. Reilly,
Hauptmanwn’s chief lawyer, went insane.

Last week a Federal District court
jury in Newark, N.J., achieved the
ultimate in irony: it convicted a de-
tective trying to solve the Lindbergh
case of violating the law which makes
it a Federal crime to carry a kidnap

victim across State.lines. Four years
ago, Congress passed this “Lindbergh
Law” in answer to popular indignation
over the New Jersey kidnaping.

In eight weeks of criminal proceed-
ings—longest in New Jersey history—
211 witnesses convinced a jury that El-
lis Parker, 65, salty-tongued county de-
tective, and his 26-year-old son, Ellis
Jr., kidnaped Paul H. Wendel, Trenton
ex-lawyer, whom they took to New York
and tortured until they extorted a false
confession of the Lindbergh kidnaping.

Parker produced the fantastic ‘“‘con-
fession”—which his son dictated to
Wendel in the tense, hysterical days
preceding Hauptmann’s execution. Au-
thorities promptly branded it a hoax;
Wendel repudiated the story; and the
elderly detective’s attempted independ-
ent solution of the crime—which might
have made him rich and world-famous
—resulted in his disgrace.

When the Parkers’ trial opened, three
accomplices admitted the conspiracy to
kidnap Wendel. Two turned State’s
evidence and testified that the de-
tective—whose crime-detection record
covered 44 years—engineered the plot
which ended in stretching Wendel on the
rack in a Brooklyn “torture chamber.”

For the Parkers the jury recom-
mended mercy; they may be sentenced
to life terms or may merely be placed
under probation.

Curious sidelights on the Lindbergh
case bobbed up in the sea of testimony:
Parker refused to testify at Haupt-
mann’s trial because he “knew nothing
about the case,” but he paid secret
night visits to Hauptmann in the Tren-
ton death house. Parker still thinks
Wendel is guilty: “No man living could
ever make a confession like he did...
unless he is guilty.”

ACME

Hearsts: William R. Jr., New York Journal publisher; William R. Sr.;
John R., Journal President; George, San Francisco Examiner publisher

32

FOURTH ESTATE

HEARST: His Beloved New Yor;
American Adopts a I-Day Wee,

For years insiders called William
Randolph Hearst’s New York morning
newspaper the Vanishing American,
Though the California publisher stuffeg
its pages with high-priced columnists,
cartoonists, and features, New Yorkers
gradually turned elsewhere for news
The American’s daily circulation felj
toward 300,000—lowest in the morning
field, and microscopic compared to The
News’ 1,700,000. In 1936 the paper
lost $1,000,000.

Last week The American vanished—
almost. Wednesday its front page an-
nounced it would “consolidate” with the
Hearst-owned tabloid morning Mirror
and The Evening Journal: “The prac-
tical disadvantages of maintaining three
competing newspapers in one com-
munity make a combination of this
kind desirable.” (Thus Hearst, never
anxious to publicize all his press hold-
ings, admitted for the first time that he
owned the Mirror.)

Thursday The American published its
last daily edition. Hearst continues the
profitable Sunday American (circula-
tion, 1,036,000). William Randolph
Hearst Jr., publisher of The American,
shifted to a similar post with The
Journal. American’s features were di-
vided between The Mirror and Journal.

Few New York readers missed The
American, but the merger had reper-
cussions. Hearst promised jobs for 63
to 70 per cent of the 2,800 American
staff members; to the rest he offered
six months’ preference in hiring for his
other publications. That didn’t satisfy
the American Newspaper Guild, the
C.I.O. editorial union. Three local
Hearst units met and demanded that
no one be fired.

Other New York sheets pounced on
the corpse. In the first scramble they
ignored The American’s lean circula-
tion; what they wanted most was the
fat classified advertising. Full-page ads
screamed: “Now it’s The Journal for
want ad results”; “Use classified adver-
tising that brings results ... The
Times”; “A hit . .. World-Telegram
want ads.”

City-room gossips found varied expla-
nations for the surrender of Hearst's
favorite newspaper—the daily he had
entrusted to his 30-year-old second son,
who is more like his father than any of
his four brothers. The most prevalent
stories: Hearst, 74 and failing in health,
was liquidating his holdings in prepara-
tion for death; the death last year of
his chief lieutenant, Arthur Brisbane,
killed Hearst’s enthusiasm; higher taxes
and labor costs made The American
too expensive; The American was
caught in a profitless void between the
more sedate Times and Herald Tribune
and the more sensational News and
Mirror.

Hearst first hit New York with a bag
of money and a head full of ideas. In
1887 he had wheedled his mine-rich

NEWS-WEEK July 3, 1937

fathe
The
vigor
series
amin
moth
othe!
East
Jose]
New
yello
He
pare
proc
a re
Wor
his s
pseu
In t
tion

father, George Hearst, into giving him
The San Francisco Examiner. When
vigorous advertising methods and a
series of “exposés” had put The Ex-
aminer on its feet, he persuaded his
mother to give him $7,500,000 for an-
other venture. Thus armed, he headed
East in 1895 to invade the domain of
Joseph Pulitzer, who had cornered the
New York market with his sensational
yellow World.

” Hearst, then 32, bought the thread-
bare Morning Journal for $180,000. He
proceeded to show Pulitzer how to run
a real yellow newspaper. He hired The
World’s editors and reporters over to
his side. He went in for sex, crime, and
pseudo-science, graphically illustrated.
In three months The Journal’s circula-
tion jumped from 20,000 to 150,000.

Still the pace didn’t suit Hearst, so he
developed a sudden sympathy for Cuba.
The Spanish-American War gave The
Journal 1,000,000 readers.

Then Hearst ran into trouble. Be-
cause his readers included thousands of
Irish and German immigrants, he
turned against the pro-British McKin-
ley administration. On McKinley’s sec-
ond election in 1900, The Journal edi-
torialized: “If bad men cannot be got
rid of except by killing, then the kill-
ing must be done.”

In 1901, Governor Goebel of Ken-
tucky was assassinated. For The Journal
Ambrose Bierce wrote a quatrain:

The bullet that pierced Goebel’s

breast

Can not be found in all the West;

Good reason, it is speeding here

To stretch McKinley on his bier.

Later, an anarchist shot President
McKinley. The subsequent anti-Hearst
furor forced him to change the: name of
The Journal—which now had an eve-
ning edition—to The American and
Journal. In 1904 the morning and
evening editions took separate names.

The World War started the Hearst
newspapers’ influence on the down-
grade. Still anti-British and pro-Ger-
man, he bitterly opposed American
intervention. The American’s circula-
tion dwindled, and other Hearst papers
slipped with it. Hearst found his publi-
cations short of cash. In 1924 he sold
preferred stock in his publications for
the first time. The confusing maze of
Hearst corporations and holding com-
panies made more and more bank loans.

Last March Hearst Publications, Inc.,
asked the SEC’s permission to issue
$22,500,000 worth of securities; Hearst
Magazines, Inc., sought approval of a
$13,000,000 issue. Left-wing organiza-
tions grabbed the chance to pick on
their enemy. They complained to the
commission that little of the money
would go to the subsidiaries. Instead,
they said, it would be diverted to parent
companies about whose assets little is
known, and eventually would reach
Hearst’s hands; part of the proceeds
would be used to retire loans guaran-
teed by Hearst personally. Last week

the SEC hadn’t yet approved the issues.

The worst sufferers in Hearst’s 22-
paper chain have been the morning
editions. Most hit new lows during the
depression and have since failed to re-
bound properly. Gossip has others ready
for the ax.

July 3, 1937 NEWS-WEEK

SHAKESPEARE: CBS Stars
Come Out to Rival Barrymore

Shakespearean rivalries will streak
through Summer skies as Columbia
Broadcasting System hurls a phalanx
of high-priced voices against the Lone
Knight of the National Broadcasting
Company, John Barrymore. Immediate-
ly after the great actor magically
streamlined “Hamlet” last week as the
first of his starring series, Columbia
officials hurriedly assembled for pub-
lication a glittering list of vowel wizards
who will vie for the ears of Monday-
night radio listeners.

Although CBS first announced the
Summer Shakespeare season five weeks
ago, NBC program experts beat them
to the start with Barrymore and all
the publicity frills his name evokes
(NEws-WEEK, June 26).

Then came the Columbia counter-
barrage: a series of eight condensed
plays to begin July 12, from 9 to 10,
Eastern Daylight Time, Monday nights
(Barrymore’s time is 9:30 to 10:15), and
an imposing list of stars. The plays:
“Hamlet,” “Macbeth,” “King Lear,”
“Twelfth Night,” “As You Like It,” “The
Taming of the Shrew,” “Henry IV,” and
“Much Ado About Nothing.” Order of
presentation was not announced.

Burgess Meredith, a successful stage
portrayer of whimsical youth will have
a try as Hamlet. Two Thespians whose
Broadway Shakespearean attempts met
with critical disappointment last season
will essay other roles: an erstwhile
Hamlet, Leslie Howard becomes Bene-
dick in “Much Ado About Nothing”;
Walter Huston seeks the success as
Henry IV that eluded him as Othello.

The “Hamlet” program promises in-
teresting interpretations: William A.
Brady, 74-year-old Broadway producer,
as the Ghost; his wife, Grace George, as
the Queen; Walter Abel as Horatio, and
Montagu Love as the King. Edward G.
Robinson will play Petruchio in “The
Taming of the Shrew.” “Twelfth Night”
has Tallulah Bankhead as Viola; Sir
Cedric Hardwicke as Malvolio; Estelle
Winwood—whose fluttery West Coast
portrayal of Portia in “The Merchant
of Venice” last season was at least
novel—-as Maria; and Orson Welles, the
Federal Theatre Project’s magnificent
Dr. Faustus, as the Duke.

In “Henry IV,” Brian Aherne, hand-
some British stage and screen star of
creamy accent, will play Prince Hal,
with able Walter Connolly as Falstaff.

The list of players—none known for
the characterizations they will attempt
—indicates Brewster Morgan, director,
may get what he claims was the pur-
pose of the casting: fresh and striking
interpretations of the roles on the air.

Morgan should know his Shakespeare.
A Kansas City, Kan., boy, he went from
the University of Kansas to attract Brit-
ish notice as the first American Rhodes
scholar to direct Shakespearean plays
at the Oxford University Theatre. Aft-
er postgraduate work on Broadway,
he entered radio in 1934.

cat

* ECONOMY * CONVENIENCE

* USABLE SPACE « ACCESSIBILITY
EXCLUSIVELY IN

ELECTRIC REFRIGERATORS

THIS COUPON OUT

It means money to you. Hundreds of

ambitious men and women are earn-
ing money in their spare time with
this easy method.

Mail this coupon with your name
and address attached, or write to

Roger Adams, NEWS-WEEK

350 Dennison Ave.
Dayton, Ohio
HELP YOUR HAIR!

Start today and make ‘
a regular practice of
using this famous
treatment — Glover’s
Mange Medicine
with Massage. And Sham-
poo with Glover’s Medi-
cated Soap. It will make
your scalp fairly tingle
with cleanliness and free
it of Dandruff. Sold atall
Druggists. Your Barber
can give you Glover's!

GLOVERS

MANGE MEDICINE

——— oe

For Your InfFormaTION-

Authentic Pointers on Today's News; Advance Notice of
Tomorrow's—From the Reports of Field Correspondents

COURT FIREWORKS: Revival of the Su-
preme Court issue on the Senate
floor next week is apt to start a long
series of oratorical explosions.
Chances are considered about 50-50
that some sort of compromise—pos-
sibly calling for one new Justice this
year and one next—will pass before
the end of this session. The admini-
stration believes that it can count on
at least 50 votes (only 48 are neces-
sary) for such a plan, but it faces
an almost certain filibuster in the
Senate and a tendency to stall in the
House.

TAX-EVASION FIZZLE: By all fair stand-
ards, the early part of the adminis-
tration’s big publicity stunt—the tax-
avoidance inquiry—was a flop. At-
tendance, except for the first few
days, has been mediocre; the revela-
tions fell short of advance billing;
and most newspapers played the
story down in favor of the labor war.

What's more, the opening shots back-
fired. Note that the early hearings
proved little except that the Treasury
itself was to blame for one big “‘loop-
hole” (the low withholding tax on
aliens) and has been amazingly re-
miss in clamping down on the trick
Bahaman insurance-company scheme.
One of the big results of the inquiry
will probably be a shake-up of the
Internal Revenue Bureau—the last
thing in Morgenthau’s mind when
he induced F.D.R. to recommend the
investigation.

HONEST ROCKEFELLER: The Congres-
sional tax-investigating committee
originally planned in its initial hear-
ings to cite John D. Rockefeller Jr.
as one of the few ultra-rich who
honestly paid the government every
cent he owed without resorting to
any legal loopholes. For some un-
known reason, the plan was quietly
scrapped.

LABOR FOR FARMERS: When and if a
reasonably popular farm bill (Some-
thing far narrower than the present
omnibus bill) gets before Congress,
watch John L. Lewis and his C.I.O.
go to bat for it. Realizing that farm-
ers are reacting against the current
C.I.0. disturbances, Lewis is looking
for ways of winning their support.

CONSERVATIVE SETBACK: Major devel-
opments in the Democratic party
may be foreshadowed by last week’s
Senate vote on the Robinson-Byrnes
amendments to the Relief Bill. It
showed for the first time that the
administration-progressive group can

win even over the opposition of the
“old reliable’ Democratic hierarchy
(Robinson, Byrnes, Harrison, Pitt-
man, etc.). Thus, the undercover
drive of semiconservative Southern-
ers (including Garner) to wrest 1940
party control away from Roosevelt
may prove a boomerang, resulting in
the fall of the old-line Senate leader-
ship itself.

LEFTIST BLOC: Keep an eye on the

progressive group in the House
(with a nucleus of about 50) which
Maverick of Texas is welding into a
fairly workable unit. But note that
the members are determined not to
tie themselves and their principles
up with the 1940 renomination of
Roosevelt. They’ve reached an in-
formal agreement to stop dramatiz-
ing F.D.R. and to make a point of
criticizing him from time to time.

VAN NUYS DOOMED: There are grow-

ing indications that Senator Frede-
rick Van Nuys, Indiana Democrat
who bitterly opposed the court plan,
is headed for the scrap heap. Not
politically strong anyway, he’s losing
Federal patronage by the handful to
his colleague, Senator Minton. All
signs point to a working agreement
between Postmaster Farley and Gov-
ernor Townsend to back a strong
candidate against Van Nuys next
year.

LA FOLLETTE ‘SENSATIONS’: Senator La

Follette’s subcommittee, returning
to headlines this week with hearings
on the Republic Steel riots on Me-
morial Day, is prepared to fire a
long series of other shots at industry
as soon as more money (about $100,-
000) is appropriated for expenses.
Major subjects on which the com-
mittee has quietly piled up evidence:
Weirton Steel, the Black Legion (al-
legedly financed by Michigan in-
dustrialists), Ford Motor Co.

FORD FIGHT: The big rumpus between

the C.I.O. and Ford isn’t likely for
several months—at the earliest.
Union organizers find the going sur-
prisingly slow—partly because many
Ford workers undoubtedly distrust
the C.1LO., partly because many
others are scared stiff of being
identified as union members. Some
of the U.A.W. meetings in fhe De-
troit area are still held in pitch dark-
ness to avoid recognition of Ford men.

LABOR NIGHT CLUB: Believe it or not,

James Dewey, top-rank Federal la-
bor conciliator, hopes shortly ' to

turn night-club impresario. He and
I. M. Ornburn, treasurer of the
A.F. of L. union-label department,
are dickering for a Washington dine.
and-dance spot, which they hope to
establish as a meeting place for
labor chiefs, conciliators, and _ jp.
dustrial labor-relations managers,

TRIVIA: Federal agents are again ip.

vestigating Dr. Townsend’s income
taxes... John L. Lewis Jr. plans to
enter Princeton this Fall .. . Inci-
dentally, Lewis Sr. is showing his
recent strain, snapping at newspaper
men ... Secretary of the Treasury
Morgenthau has finally discovered
the “leak” through which reporters
got the names of his secret callers:
it’s a glass transom opening into the
approach to the Secretary’s private
elevator; frosted glass has now been
installed.

UNFINISHED U.S. EXHIBIT: In spite of

previous postponements of its dedi-
cation, the American building at the
Paris Exposition won’t even be com-
pleted in time for its official “open-
ing” July 4. Walls and roof will be
up, and the New Deal exhibits will
be on hand, but the interior wil! be
a mess. Delay is due mainly to
France’s labor scarcity, the U.S. hav-
ing refused to follow Germany and
Italy in bringing in its own laborers.

BOLIVIAN HERRING: Always looking for

“international incidents” to strength-
en itself at home, Bolivia’s shaky
military dictatorship last week made
a diplomatic issue of “‘clashes” along
the Bolivia-Peru border—producing
big South American news stories,
some of which even dribbled into
U.S. papers. Actually, the “clashes”
were just tiffs between smugglers
and Peruvian police such as occur
almost weekly and receive publicity
only when one of the two countries
feels the need of creating a scare.

MEXICAN LABOR WAR: Expect serious

interunion troubles in Mexico be-
fore long. Armed clashes between
the big C.R.O.M. union and _ such
extremist groups as the Communist-
controlled C.T.M. are likely, in spite
of President Cardenas’ quiet but
frantic efforts at settlement.

CUBAN NEW DEAL: Dictator Batista is

boasting to acquaintances that his
Cuban “New Deal” will far outstrip
Roosevelt’s in its socialization of
business, distribution of land to
thousands, and elaborate social-se-
curity laws. He’s speeding up his
program mainly to steal thunder
from the growing Leftist opposition.

ABOUT-FACE IN TOKYO: Despite super-

ficial signs to the contrary, wun-
censored advices are that Japan is
again progressing toward a “totali-
tarian” State. The liberals in Parlia-
ment who forced the fall of the “pro-
Fascist” Hayashi Cabinet have be-
gun voting with the similar new
Cabinet, because (1) most of them

st > :
No PART OF THIS OR THE NEXT PAGE MAY BE REPRODUCED WITHOUT; WRITTEN PERMISSION)

34

NEWS-WEEK July 3, 1937

RUSSIAN DETERMINATION: There’s a

July 3, 1937 NEWS-WEEK

are coming to view the Rightist
trend as inevitable, (2). many are
yielding to wholesale patronage
from the new government, (3) still
others are willing to vote for any-
thing in order to forestall the threat-
ened dissolution of Parliament.

GOD & ADOLF: Hitler deification has

attained legal status. In a little-
publicized decision upholding a phase
of the Nazis’ anti-Catholic drive, the
Brunswick Court of Appeals held:
“The Fuehrer is an envoy whom God
has charged with a great mission for
his people and for the world. It is
therefore the duty of the church not
to oppose, but to obey the will of
God of which the Fuehrer is the ex-
pression.”

FOREIGN NOTES: Renewed agitation for

tearing down the Eiffel Tower, built
as a temporary feature for the 1889
Exposition, has shocked Parisians in-
to forming a society of “Friends of
the Eiffel Tower” ... Britain’s new-
est anti-tank gun will puncture any
known tank armor at more than a
mile ... The Spanish loyalist capital
of Valencia has four strip-tease
shows; on the curtain of one is the
notice: “Comrades, show your de-
votion to the republic, your discipline,
by not interfering with the artists’
work.”

DYED AUTOS: Industrialists are enthu-

siastic over the new direct process
perfected by Prof. Colin Fink of
Columbia for coating steel and iron
with aluminum. They’re particularly
interested because another recent de-
velopment makes it possible to im-
pregnate color into aluminum. The
combination points toward auto-
mobiles which won’t be painted but
will be plated with tinted aluminum,
said to be nonfading and almost in-
destructible.

TRAILING TRAILERS: Note how the

trailer industry, though progressing
moderately well, has fallen far short
of the boom generally predicted for
it. Main reasons: (1) Most of the
manufacturers are financially weak,
can’t afford big advertising, and have
totally inadequate distributing fa-
cilities. (2) States and cities are
passing an increasing number of
anti-trailer ordinances.

LEAD BATHROOMS: A new technique in

bathroom construction may soon
come into widespread use. In place
of tile walls, the method calls for
spraying molten lead on a thick,
woolly wallboard. Result: a pleasant
silver-gray color, smooth, water-
proof, rustless, and soundproof—at
about half the cost of.tile.

weird story behind all the confused
reporting of the Russian transpolar
flight last fortnight. Soviet suppres-
sion of early. news was so rigid that
the press obtained no word of the
take-off and only badly conflicting
stories of the later stages of the
flight. An explanation of the cen-

Incidentally,

sorship—unbelievable if it hadn't
come via a most responsible Moscow-
to-Washington route—is this: the
Soviet, determined not to repeat the
failure of the much publicized 1935
flight, had a second identical plane
ready to take off if the first were
lost, leaving the original failure to
go unknown and unwept.

State Department geo-
graphers ridicule the claim that the
transpolar route is the shortest for
the talked-of Moscow-to-San Fran-
cisco airline. They say it’s at least
1,800 miles shorter to cross Lapland,
nick the Arctic Circle between the
20th and 60th meridians, then to
cut down southward across Prince
Patrick Island.

PUZZLE OFFICE: A New York broker,

determined to win the Old Gold
puzzle contest (see page 28), last
week rented a special office, equipped
it with abundant reference books,
advertised for puzzle-solvers, hired
ten of the 200 applicants, and put
them to work on the “run-off” se-
ries of 90 pictures. He supervises
the work, keeping his mind clear to
select the best of the answers, which
he sent in.

PRESS NOTES: The La Follette subcom-

mittee sent a special representative
to New York to persuade newspapers
and magazines to give maximum
publicity to its rumpus this week
over the suppressed newsreel of the

Chicago labor battle . . . Newspaper

publishers are establishing a $250,-
000 war chest to fight radio as an ad-
vertising medium .. . Rival press
services are chuckling over the way
The Associated Press predicted a
Hitler coup in Danzig on June 19
and later explained the incorrect
forecast by reporting that its own
publicity caused the Fuehrer to
change his mind.

DIESEL PHONIES: The boom in Diesel

MISSING PERSONS:

engines has produced a bumper crop
of bogus “Diesel correspondence
schools,” including one in Denver
which mulcted students of $31,000
before it was exposed. As opposed to
the schools’ high-powered ads, Diesel
experts assert that nearly all the
correspondence courses are phony
and that the value of any of them
is “highly dubious.”

Upton Sinclair,
whose EPIC campaign for Governor
set California on its ear in 1934, lives
in Pasadena, is writing a new book;
says he’s through with politics ...
Gilbert Romagnano, right-hand man
of Alexandre Stavisky, the swindler
whose murder wrecked a French
Cabinet, now operates a fashionable
Paris bar just off the Champs-Ely-
sées . . . Nila Cram Cook, once fa-
mous as Gandhi’s disciple, lives in
Provincetown, Mass.; does “research
work in the dance”; is bringing out
an autobiographical book; recently
won a Provincetown pie-eating con-
test.

ey

"

‘an cio

-

~ Sr Reeis

>

TODAY IN

AMERICA

By Raymond Moley

The Case For Optimism

S WE turn the half year, our fac-
tories are making goods at a rate
just below that of the boom levels of
1929. Industrial employment and pay
rolls are correspondingly high. The index
of money pay rolls has at last crept up
to join the index of employment, refiect-
ing wage rises during the past year
which have increased the purchasing
power of an important proportion of
consumers. Industry is working on a
sizable backlog of accumulated orders.
Carloadings run 15 per cent ahead of
last year. Retail sales are rising.
Farm income runs from a fifth to a
quarter higher than it was last year
at this season, and the outlook for the
farmer is excellent. We shall harvest
the largest wheat crop in many years,
barring unforeseen disaster in the
spring-wheat area. The world needs
wheat, and the crop will bring good
prices. Cotton prospects are good, too.

+.

HESE are the fundamentals of na-

tional prosperity. They are all en-
couraging. Yet Wall Street is pessi-
mistic. The bond and stock markets
are weak and dull. Judged by corpor-
ate earnings for the first six months of
this year, stocks are a great bargain.
Why aren’t they being snapped up by
’ eager investors?

There is the dangerous situation in
France, of course. A good many ob-
servers felt that France had not de-
valued the franc sufficiently when she
made her great decision last September.
The flight of capital, inspired in part
by distrust of the stability of the franc
and in part by fear of a capital levy
by the Popular Front, has brought
France to a credit crisis. But even as-
suming a French debacle, it could not
permanently interrupt our own eco-
nomic progress.

Rumors of a possible change in the
price of gold from $35 to $32 have dis-
turbed the markets, particularly in
Lyndon. But no well-informed econo-
mist here has put any credence in the
reports. For one thing, commodity
prices are still 15 per cent below the
1926 level, which, by common agree-
ment, has been accepted as the goal of
recovery. It is hard, indeed, to imagine
the Administration’s deliberately re-
treating from the $35-an-ounce gold
price, thus engineering the deflation of
agricultural prices which would in-
evitably follow. Furthermore, so long

36

as the United States is the principal
buyer of gold, a reduction in price
from $35 to $32 would not stem the
flood of gold into the Treasury.

As for Great Britain, any cut in the
price sHe pays for gold would be a slap
in the face of Canada, Australia and
India and would deliver a knockout
blow to South Africa. Canada and
Australia are both gold producers and
are both dependent on agricultural ex-
ports; India is a great hoarder; South
Africa is the world’s biggest gold pro-
ducer. No matter if France is obliged
to let the franc slide off, Great Britain
must cooperate in maintaining the
present gold price and the present dol-
lar-pound rate.

The factor that is causing Wall
Street to view the prospects for the
rest of this calendar year with mis-
givings is the disturbed labor situation
which is currently curtailing the out-
put of steel and is harassing other
industries, including the automobile in-
dustry which thought it had made its
peace with the C.I.O. The fear that the
government may be unwilling to inter-
vene in these disputes in an impartial
manner has, in turn, produced a dead-
lock in the investment market.

Virtually no long-term borrowing has
been done since the slump in bond
prices in March. It is significant that
many new issues for which the SEC
has granted approval never have been
launched, but have been shelved for
several months. Trading in seasoned
issues is so small that quotations are
hardly better than nominal. Private
investors have largely withdrawn from
the market, and institutional. buyers
are reluctant to reenter it until trends
of interest rates become clearer.

—

HE importance of all this is that

there can be no continuing high level
of business for the heavy industries
without long-term borrowing. It is
through bonds that business finances
the building of new plants and the
modernization or expansion of old ones.
The economists who believe the present
deadlock in the long-term investment
market will not soon be broken there-
fore expect a business recession to set
in this summer or early fall, slowing
down the heavy industries and possibly
spreading until it affects the industries
that make consumers’ goods.

In support of this view of the pessi-
mists, it must be pointed out that the
Federal government is no longer pump-
ing money into the country’s total

supply. The budget for the fiscal year
1938, upon which we are just entering,
will show an accountant’s deficit, after
prayer, of, say, $400,000,000, but the
Treasury will collect about a billion
dollars in social-security and unemploy-
ment-insurance taxes, so that it wij
have an actual cash surplus and need
do no borrowing. Therefore, any ex-
pansion in business must come from
new public investment. Unless the in-
vestment market thaws, there is, then,
good reason to expect a recession in
the heavy industries at least.

It must be pointed out also that the
forward buying which built up in-
dustry’s backlog of orders has slowed
down. The alarm over the swift rise
of commodity prices which was im-
pelling businessmen to increase in-
ventories has subsided since the bubble
of commodity speculation burst in
London.

—

UT the great basic tides of oncoming
crops and the hunger of consumers
for goods still work for prosperity.
Profitable crops benefit not only the
farmer, but also the railroads, the agri-
cultural-implement industries, the mail-
order houses, the automobile industry
—in fact, every line of business. A
great wheat crop with the world’s
storehouses bare and poor crops abroad
more than once has heralded a strong
advance in American prosperity.

Another thing—gold continues to
pour in here at the rate of $140,000,000
a month, much of it representing the
35 per cent increase in world gold pro-
duction since 1933, part of it gold com-
ing out of hoarding in response to
rumors that its price may soon be cut.
It is all very well to talk of “steriliz-
ing” the incoming supply. But, despite
that and all other manipulations the
government can contrive, the mere
fact that the total supply of gold is
increasing is a powerful force driving
prices upward.

That businessmen do not share the
pessimism of the financiers may be
read from an unmistakable sign—the
rapid expansion of commercial loans.
The spring expansion in business bor-
rowing from banks has amounted to
$493,000,000, putting the total a billion
dollars above the level of last year at
this time. Businessmen borrow money
because they intend to use it in their
business; there is no surer index of
their judgment of the immediate future.

Under pressure of better consumer
incomes, both. rural and urban, indus-
tries will demand funds to launch new
enterprises and expand old ones. With
the undivided-profits tax, they cannot
do this out of earnings. The demand

of American industry for funds with
which to go forward cannot be denied
indefinitely. Nor can American industry
long be denied a safe place in which to
live and work.

NEWS-WEEK July 3, 1937

<2)

Whet!
quick!
makin
up rot
lection
hands
structi
Social

m slatem

AD

ADDRE

=

U4 A

f (( 7. '
GHA, NAF. GCLGGAAL
/

... in offices where all else is modern and efficient, names

and addresses and related information are tediously

rewritten by hand on all sorts of forms as in the long,
long ago. And in the same out-dated way, standard
specifications, instructions, descriptions and other fre-

quently-used data are written again and again.
Thus the wheel of expense revolves. Thus
employees are kept from more

profitable work.

Qe 443" tay
BER no t

Whether your business is large or small, Addressographing will advertising and selling literature to be mailed... on stockholder
quick!) make big savings in necessary repetitive work .. . by records and dividend checks .. . on factory production and ship-
makin: possible simpler and more efficient systems; by speeding ping forms ...on stock records and inventories ...on publication
up rowine; by stopping mistakes; by stepping up sales and col- wrappers ... on ALL KINDS of office, store and factory forms
lection = * Always accurately and 10 to 50 times faster than and communications. * The Addressograph line includes new,
hands, \ddressograph writes names, addresses, information, in- improved, expense-reducing machines in three classes: hand-
‘tructi is or other facts and figures on employees’ pay forms and operated, electric and super-speed automatic models. Write on
Social ecurity records, reports and receipts . . . on ledger pages, business stationery for a free copy of “Business Short Cuts” .. .
slatem: ats and other accounting and collection forms . . . on a 152-page book of Addressograph methods and machines.

ADE; RESSOGRAPH-MULTIGRAPH CORPORATION, Cleveland, Ohio

ADDRES SOGRAPH-MULTIGRAPH of GANADA, Limited, TORONTO e@ SALES AGENCIES IN PRINCIPAL CITIES THROUGHOUT THE WORLD

Rewriting over and over by hand is wasteful
1’ “GOOD BUSINESS” T0 ADDRESSOGRAPH

ccluvalion oO,

an E don’t say that you have to
tf. be an independent distilling
company like Frankfort in
order to produce good whis-

key. But we do believe that
being independent helps.

a

For a family concern like ours, one
that’s been operated and controlled by the
same family since its founding in 1865—
such a company isn’t beholden to outside
financial interests. It has no fixed dividend
requirement to meet. It can concentrate on
the one business of making good whiskey.

As our great-grandfather, the founder of
Frankfort, said: “Let somebody else make
the most whiskey—we want to make the
best whiskey.”

To make the best whiskey takes patience.
It also takes the willingness to spend more
money to produce better whiskey. But
that’s the way we operate.

We buy only choice grain, seasoned to a
flinty hardness. (Because such grain makes
the finest whiskey.) We cling to the old-
fashioned sour-mash method of distilling—
which takes one-third longer, and produces
less whiskey per batch of grain. (Because
that, we believe, is the only way to make a
truly great whiskey.)

Nor do we stop there. We try to make
sure that our whiskey is sold as honestly—
yes, and as honorably—as it is made.

We try to see to it that Frankfort whis-
kies are sold through the most reputable
outlets. And we believe you'll find that the
places that display Frankfort goods are
the best in yourcity.

Moreover, it is our hope that those who
buy our whiskies are people who respect
them as we do...who treat their whiskey
moderately...who share Abraham Lin-
coln’s attitude toward liquor—that “the

;
;
%
%
2
—
&

“wn h, dipendent

difficulty lies not in the use of a bad thing,
but in the abuse of a very good thing.”

“ 4 “
To obtain a free reproduction of the above natu:
color photograph suitable for framing, write
Frankfort Distilleries,Inc., Dept.D,Louisville,!

FRANKFORT DISTILLERIES,
INCORPORATED

LOUISVILLE and BALTIMORE
MAKERS OF
Four Roses
90 PROOF
Old Oscar
Sofifier BRAND

90 PROOF

Suu ¢ Gone z
92 PROOF
Mattingly

éc 1 loore
90 PROOF

All blends of straight whiskies

ILLUZDINRKAIE WD Ye od eee. te

i'eHe

= 25 5 = Bw em be EAE. €& AA SS AI maisatiwmwien sti - oa” oe